Annual Report 2007—2008 Ausaid Annual Report 2007—2008

AUSTRALIAN AGENCY FOR INTERNATIONAL DEVELOPMENT

ANNUAL REPORT 2007—2008 AUSAID ANNUAL REPORT 2007—2008

ISSN 1032–2019 ISBN 978–1–921244–77–3 (volume 1) ISBN 978–1–921244–78–0 (volume 2) ISBN 978–1–921244–79–7 (two–volume set) ISBN 978–1–921244–80–3 (volume 1 online) ISBN 978–1–921244–81–0 (volume 2 online)

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General’s Department, Robert Garran Offices, National Circuit, Barton, ACT, 2600 or posted at http://www.ag.gov.au/cca

Acknowledgements AusAID editor: Angus Braithwaite Editorial consultant: Morris Walker Pty Limited Indexer: Michael Harrington

Internet websites AusAID home page http://www.ausaid.gov.au DFAT home page http://www.dfat.gov.au AusAID annual report http://www.ausaid.gov.au/publications

Distribution This report is available through the above websites and directly from the Australian Agency for International Development (AusAID).

Comments about this report are welcome and should be directed to: AusAID GPO Box 887, Canberra, ACT, 2601, Australia Telephone: (02) 6206 4000 Facsimile: (02) 6206 4880

Australian Business Number (ABN): 629 215 588 38

Design and typesetting by ZOO Communications Printing by Pirion

ii AUSAID ANNUAL REPORT 2007—2008

CONTENTS

Guide to the report ...... vii

Section 1—Overviews ...... 1

Director General’s review...... 2 The year in review ...... 2 Agency overview ...... 8 Role and functions ...... 8 AusAID and enhanced whole-of-government engagement ...... 8 Organisational structure ...... 9 Outcomes and outputs framework ...... 11

Section 2—Report on performance ...... 15

Effectiveness against outcomes ...... 16 Effectiveness—Overall achievement of outcomes ...... 20 Performance against development objectives ...... 22 Administered programs ...... 41 Country and regional programs ...... 41 Global programs ...... 115 Output 1.1—Policy ...... 145 Output 1.2—Program management ...... 149 Output 2.1—Australia-Indonesia Partnership for Reconstruction and Development .....152 Financial results ...... 154

Section 3—Management and accountability ...... 157

Corporate governance ...... 158 External scrutiny ...... 163 Management of human resources ...... 164 Purchasing and assets ...... 170 Service charter ...... 173

Section 4—Financial statements ...... 177

iii AUSAID ANNUAL REPORT 2007—2008

Section 5—Appendices ...... 255

A. Minister and Parliamentary Secretaries ...... 256 B. Resources summary for outcomes ...... 258 C. Aid program expenditure ...... 259 D. Staffing overview ...... 264 E. Freedom of information ...... 268 F. Information available on the internet ...... 272 G. Consultancy services ...... 273 H. Advertising and market research ...... 275 I. Ecologically sustainable development and environmental performance ...... 276

Section 6—Glossary and indexes ...... 283

Glossary ...... 284 Compliance index ...... 286 Index ...... 289

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Figures and tables

Figure 1: AusAID organisational structure at 30 June 2008 ...... 10 Figure 2: AusAID outcomes and outputs framework 2007–08 ...... 12 Figure 3: Estimated total Australian ODA 2007–08 ...... 21 Figure 4: Estimated total Australian ODA by sector 2007–08 ...... 21 Figure 5: Estimated total Australian ODA on education 2007–08 ...... 26 Figure 6: Estimated total Australian ODA on health 2007–08 ...... 31 Figure 7: Estimated total Australian ODA to Papua New Guinea by sector 2007–08 ..43 Figure 8: Estimated total Australian ODA to the Pacific by country 2007–08 ...... 51 Figure 9: Estimated total Australian ODA to Indonesia by sector 2007–08 ...... 71 Figure 10: Estimated total Australian ODA to East Asia by country 2007–08...... 81 Figure 11: Estimated total Australian ODA to South Asia by country 2007–08 ...... 101

Table 1: Resources summary for outcomes ...... 258 Table 2: Total Australian ODA to partner countries ...... 259 Table 3: Country and regional program expenditure 2004–2008 ...... 261 Table 4: Global programs expenditure 2004–2008 ...... 263 Table 5: Employees by classification, location and gender, 30 June 2008 ...... 264 Table 6: Employees by status and attendance type, 30 June 2008 ...... 264 Table 7: Senior executive service, 30 June 2008 ...... 264 Table 8: Employees by location and gender, 30 June 2008 ...... 265 Table 9: AusAID collective agreement salary range, 30 June 2008 ...... 266 Table 10: AusAID SES employee salary range, 30 June 2008 ...... 266 Table 11: Employees by workplace diversity category and level, 30 June 2008 ...... 266 Table 12: APS employees undertaking aid program delivery activities paid against administered budget by classification and gender (excluding experts and advisors on commercial contracts), 30 June 2008 ...... 267 Table 13: AusAID winners of Australia Day Achievement Awards 2008 ...... 267 Table 14: Learning and Development—participants 2007–08 ...... 267 Table 15: Summary of consultancy contracts and period offers ...... 273 Table 16: Consultancy services let over $10 000 during 2007–08 ...... 274 Table 17: Advertising and market research expenditure ...... 275

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Feature boxes Annual Review of Development Effectiveness 2007 ...... 16 Inclusive development: disability in Australia’s aid program ...... 18 MDG 1: eradicate extreme hunger and poverty ...... 24 MDG 2: achieve universal primary education ...... 27 MDG 3: promote gender equality and empower women ...... 28 MDG 4: reduce child mortality ...... 31 MDG 5: improve maternal health ...... 33 MDG 6: combat HIV/AIDS, malaria and other diseases ...... 34 MDG 7: ensure environmental sustainability ...... 37 MDG 8: develop a global partnership for development ...... 40 Australia-PNG Forest Carbon Partnership: commitment to take action on climate change...... 44 Disaster relief: responding to Oro ...... 46 Sport for development: champions for change ...... 48 Australia-Pacific Technical College: training for a more productive workforce ...... 50 Pacific Partnerships for Development ...... 52 Microfinance ...... 54 Pacific Economic Survey 2008 ...... 55 Improving access to land in the Pacific...... 56 The Federal Court of Australia’s cooperation with the Supreme Court of Tonga ...... 59 Governance and growth—telecommunications reform ...... 66 Australia-Indonesia Partnership Country Strategy 2008–2013 ...... 72 Reducing poverty in rural areas ...... 75 Students make great leaps in literacy ...... 77 Clean water and sanitation improve health, dignity and development ...... 80 Combating human trafficking ...... 84 Alleviating poverty among ethnic minorities in Vietnam ...... 87 Strengthening disaster mitigation in Vietnam ...... 89 Australia’s response to Sichuan earthquake ...... 92 From a life of hardship to a life of dreams ...... 102 Australia provides further assistance to Afghanistan ...... 112 World Bank ...... 119 Asian Development Fund ...... 120 Australian support for sexual and reproductive health ...... 122 Australian support for food aid ...... 125 Social empowerment and education in Fiji ...... 128 Kate Nelson: Speaking with hands—volunteers working with disability ...... 129 Penny Clark : Youth Ambassadors—working on water in Vietnam ...... 130 Child protection policy ...... 138 Thematic knowledge management in AusAID ...... 144 Graduate careers fairs...... 166 vi AUSAID ANNUAL REPORT 2007—2008

GUIDE TO THE REPORT

Guide to volume two

The report of the Australian Agency for International Development (AusAID) refers to the outcome and output structure, and performance information presented in the Foreign Affairs and Trade Portfolio Budget Statements 2007–08 (Part B: Agency Budget Statements—Australian Agency for International Development—AusAID).

The report is the second of two volumes with volume 1 relating to the Department of Foreign Affairs and Trade.

Section 1 contains the: • Director General’s review for 2007–08 • agency overview, including role and functions, organisational structure, and outcomes and outputs framework.

Section 2 focuses on outcome and output performance information, including: • overall achievement of outcomes • performance against development outcomes • reports on programs—country, regional and global programs (multilateral organisations, emergency and humanitarian programs, non-government organisations and volunteer programs, information, education and communication programs, and cross agency programs) • reports on outputs—policy, program management, and the Australia-Indonesia Partnership for Reconstruction and Development.

Section 3 reports on management and accountability systems on: • corporate governance • external scrutiny • management of human resources • purchasing and assets • service charter.

Section 4 contains the audited financial statements for 2007–08.

Section 5 includes appendices that give additional information and reports required under specific legislation.

Section 6 contains a glossary of abbreviations, acronyms and the indexes.

vii AUSAID ANNUAL REPORT 2007—2008

Parliamentary Secretary for International Development Assistance, Bob McMullan at the Cambodia Trust Physical Prime Minister Kevin Rudd with students at Rehabilitation Centre in Phnom Penh in April 2008, speaking the Ulee Lheue State Islamic Primary School. with Mr Hak Eng, landmine survivor and prosthetist. Mr Rudd attended the inauguration ceremony Cambodia Trust receives support under the AusAID-funded for the school while in Banda Aceh to look at Landmine Survivors Assistance Program managed by the tsunami reconstruction work, June 2008 Australian Red Cross Photo: David Foote AUSPIC Photo: Chor Sokunthea

Opposite » Australia’s Minister for Foreign Affairs, Stephen Smith, presents a gift to Professor Praphan Phanuphak while visiting the Thai-Australian Collaboration in HIV Nutrition (TACHIN) project in Thailand. Mr Phan Wannameethee, Secretary General of the Thai Red Cross, is looking on (behind). The TACHIN project uses improved nutrition to enhance the care of people living with HIV/AIDS and is jointly funded by AusAID through the Australian HIV/AIDS Partnerships Initiative Photo: Jaipet Peungboonpaisal, Focon Production viii OVERVIEWS Section 1

Director General’s review Agency overview AUSAID ANNUAL REPORT 2007—2008 1

DIRECTOR GENERAL’S REVIEW SECTION

The year in review

2007–08 was an exciting year for Australia’s international development assistance program. The government announced that Australia would increase its official development assistance (ODA) to 0.5 per cent of gross national income by 2015 to assist our developing country partners to make progress against the Millennium Development Goals (MDGs), building on growth over the previous budget period. Australia’s pledge came against a backdrop of renewed international commitment to accelerate MDG attainment globally. New partnerships were initiated with some of our closest neighbours in the Pacific, and with a broad range of domestic and international stakeholders, to help implement this commitment. The year also saw significant progress towards improving the effectiveness, transparency and accountability of Australian aid.

Achieving the MDGs

Through the development assistance program, Australia is part of a global effort to make faster progress towards the MDGs. Australia’s contribution to this effort focuses on the Asia-Pacific region where a majority of the world’s poor live and where substantial development challenges confront our neighbours.

Australia is working with the countries of our region to promote faster and more inclusive economic growth to make progress towards MDG 1 (eradicate extreme hunger and poverty). There are many drivers of economic growth including investment in infrastructure, rural productivity, private sector development and telecommunication utilisation. In 2008 the Government of Vanuatu, with Australian support, successfully negotiated the introduction of competition for telecommunication services that has significantly reduced costs and facilitated expanded coverage to rural areas. In October 2007, AusAID launched the Enterprise Challenge Fund for the Pacific and South East Asia. By challenging business to look for new market opportunities, the fund aims to stimulate growth and ensure that the poor are included in the resulting benefits and opportunities.

2 OVERVIEWS DIRECTOR GENERAL’S REVIEW SECTION

Rapid increases in worldwide food prices over the last 12 months have threatened the achievements of many countries in reducing poverty and hunger. The global food crisis has 1 required both emergency and long-term responses. In May 2008, Australia provided an additional $30 million to the World Food Programme through its Extraordinary Emergency Appeal. AusAID is leading the development of the Australian Government’s long-term response to the impact of the global food crisis in developing countries.

The aid program is promoting progress towards MDG 2 (achieve universal primary education), MDG 4 (reduce child mortality) and MDG 5 (improve maternal health) by expanding investments in education and health. Key achievements in education include training over 9000 teachers and officials in Asia and the Pacific, constructing over 380 junior secondary schools in Indonesia and providing clean water and sanitation to over 500 schools in Laos. Australia’s investments in health include increased support for child and maternal health programs, such as increased access to vaccinations for children in Papua New Guinea, where children this year will receive for the first time immunisation against Haemophilus influenzae type b which causes meningitis and pneumonia, two of the most common causes of death in children in PNG. Results are also starting to be seen from investments in broader health workforce development, including better skilled midwives, pediatricians and other health workers in the region.

In our region and beyond, Australia is making a significant contribution to MDG 6 (combating HIV/AIDS, malaria and other diseases). Malaria is one of the biggest killers of children in Melanesia. The past year saw the start of the $25 million Pacific Malaria Initiative which aims to not only control malaria and reduce it greatly in Vanuatu and Solomon Islands, but also in the longer-term to eradicate it progressively island by island. An early achievement includes the completion of the largest entomological and parasitological malaria survey conducted in Melanesia which will guide elimination action plans. In May 2008, AusAID released a consultation paper on a new HIV strategy which will incorporate the latest international analysis on the epidemic. The strategy will be released later in 2008.

Australia is taking a comprehensive approach to achieving MDG 3 (promoting gender equality and empowering women). Significant progress has been made in terms of integrating gender equality into the development assistance program including by strengthening gender analysis and reporting on gender results, and through enhanced staff training. Achievements on gender equality include improvements to women’s access to justice and employment in roads projects in Papua New Guinea, strengthening women’s voices in their communities and local governments through community development initiatives in Indonesia and Philippines, and the start of a new program on women’s leadership in the Pacific. There is much more to do if MDG 3 is to be achieved.

Addressing the global challenge of climate change is essential to the achievements of the MDGs, particularly MDG 7 on environmental sustainability. As part of Australia’s response to climate change, AusAID is managing significant investments in climate change mitigation and adaptation. In 2008, the government launched the International Forest Carbon Initiative and the Prime Minister agreed on high–level partnerships with the leaders of Indonesia and Papua New Guinea. The 2008–09 budget includes a $150 million commitment to meet high priority climate change adaptation needs in vulnerable countries in our region.

3 AUSAID ANNUAL REPORT 2007—2008 1

In April 2008 the Prime Minister announced that Australia had joined the MDG Call to

SECTION Action. The Call to Action is a UK initiative that aims to galvanise widespread support, momentum and concrete action for the MDGs.

In May 2008, the government announced a 2008–09 aid budget commitment of $3.7 billion, an important step towards the continuing increase of Australian international development assistance. The budget targeted practical development outcomes, with major new initiatives promoting progress towards the MDGs and greater attention to alleviating the needs of the most vulnerable. These initiatives include investments in clean water and sanitation, fighting avoidable blindness, infrastructure, public sector capacity and land management in the Pacific. Through the budget, the government has committed to a United Nations Partnership for the MDGs. Australia will provide an additional $200 million over four years to six United Nations agencies and the Joint United Nations Program on HIV/AIDS to boost their capacity to lead global efforts to realise the MDGs. The budget also provides additional funding for humanitarian, emergency and refugee programs, Iraq humanitarian and reconstruction assistance, and non-government organisations, volunteer and community programs.

While the focus of the aid program is on making a long-term contribution to poverty reduction and sustainable development, natural disasters and other humanitarian situations continue to pose an immediate threat to achieving the MDGs and require appropriate Australian responses. During 2007–08, AusAID played a central role in Australia’s efforts to minimise the impact on the poor and vulnerable of emergencies and humanitarian crises around our region and the world. The largest emergency response was the $25 million package of assistance that Australia provided to the people of Burma following Cyclone Nargis. Other emergencies that received a significant Australian response included Cyclone Guba in Papua New Guinea, Cyclone Sidr in Bangladesh and the Sichuan earthquake in China. Australia also continued to support humanitarian activities through global contributions and in specific countries including Afghanistan and Sudan.

Building partnerships

In March 2008, the Prime Minister committed Australia to new development partnerships with the island states of the Pacific. These Pacific Partnerships for Development will provide a new framework for Australia and the Pacific island nations to commit jointly to achieving shared goals. The first partnerships with Papua New Guinea and Samoa were signed at the Pacific Islands Forum in August 2008. Partnerships will be negotiated progressively with other Pacific island countries over the coming years.

The government also entered into a strengthened five-year development partnership with Indonesia, marked by the launch of the Australia-Indonesia Partnership Country Strategy 2008–2013 in June 2008. Guided by the strategy, Australia will provide up to $2.5 billion in development assistance to help tackle poverty and promote regional peace, stability and prosperity. Australia will help Indonesia make faster progress towards achieving the MDGs, particularly to improve the health of mothers and children and increase access to clean water and sanitation.

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As Australia scales up its international development assistance, partnerships with other donor countries are increasingly important for sharing lessons and delivering effective aid. 1 In May 2008, I signed a partnership agreement between AusAID and the UK’s Department for International Development. The agreement helps give effect to a commitment by Australia’s Prime Minister and his UK counterpart to work closely together to address a range of urgent global challenges including international development. The partnership is a valuable addition to existing partnerships and collaborations with other bilateral donors including New Zealand, Germany and Japan.

Australia has strong and growing partnerships with the World Bank and the Asian Development Bank (ADB). During 2007–08, Australia participated in the replenishment negotiations for the concessional financing arms of both the World Bank and the ADB. Australia committed $583 million to the replenishment of the World Bank’s International Development Association, and is now the 12th largest donor. Australia committed $333 million to the replenishment of the ADB’s Asian Development Fund, maintaining our position as third largest donor. The outcomes of the replenishments include measures to strengthen effectiveness and enhance the focus on small and fragile states.

The OECD Development Assistance Committee commenced a peer review of Australia’s development cooperation in 2008, the first such review since 2004. The review team visited Canberra and AusAID offices in Indonesia and Vanuatu in June 2008. The review provided an important opportunity to share Australia’s knowledge and experience with the international donor community. The team found lessons for other donors in Australia’s whole-of-government approach and noted the quality of our in-country partnerships and achievements in integrating gender across the program. The final review examination will be held in December 2008.

AusAID continues to explore new opportunities to engage the Australian community in the international development program including through public awareness activities such as the Relief in sight exhibition and through partnerships with non-government organisations and the private sector such as Business for Millennium Development (B4MD). B4MD was formed in 2007 and encourages Australian businesses to address poverty in developing countries in the Asia-Pacific region. AusAID is supporting a B4MD summit that will be held in October 2008.

AusAID continues to work closely with other Australian Government agencies in policy development and program delivery. The Development Effectiveness Steering Committee continues to play a valuable role in ensuring policy coherence on priority budget and strategic issues by engaging key central agencies, namely, the departments of the Prime Minster and Cabinet, Foreign Affairs and Trade, Finance and Deregulation, and Treasury. AusAID also maintains strategic partnership agreements with key whole-of-government partners. During 2007–08, senior-level review meetings were held on the partnerships with the Attorney-General’s Department, Australian Federal Police, Australian Public Service Commission, Treasury and the departments of Finance and Deregulation, and Environment, Water, Heritage and the Arts.

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Under its Reconciliation Action Plan launched in May 2008, AusAID is looking to develop

SECTION new partnerships on the linkages between international development and Indigenous development in Australia. The plan outlines the measurable steps AusAID will take to share expertise in approaches to poverty alleviation with Indigenous organisations and Australian agencies working in the field of Indigenous development. It will also encourage the recruitment and retention of Indigenous Australians and promote the principles of diversity and cultural awareness in the workplace.

Improving effectiveness

The first Annual Review of Development Effectiveness, a product of the Office of Development Effectiveness, was tabled in Parliament in March 2008. The review found that Australia managed its aid activities well and was achieving good results. It also found that Australian aid was increasingly consistent with partner government policies and aligned with the efforts of other donors. The review identified opportunities to increase aid effectiveness including by strengthening the performance orientation of the program, getting more from technical assistance, and meeting gender equality commitments. In 2007–08, the Office of Development Effectiveness also published an evaluation of approaches to anti-corruption and commenced a number of new evaluations, including examining efforts to address violence against women in Melanesia and East Timor and improving basic services for the poor in fragile environments.

As part of making continued improvements in program performance, AusAID instituted a new Performance Assessment and Evaluation Policy in December 2007. Its implementation has strengthened AusAID’s own assessment of program quality and contributed to more effective and results-oriented program delivery.

AusAID is increasing its investment in priority research and analysis to build the evidence base on development and contribute to more effective aid. In January 2008, the Parliamentary Secretary for International Development Assistance launched AusAID’s first Development Research Strategy. The Australian Development Research Awards commenced during the year with funds awarded to 27 projects on a competitive basis. AusAID also completed two significant reports on development in the Pacific, the first Pacific economic survey and the Making land work report on reconciling customary land and development.

AusAID continued its ongoing process of corporate reform during 2007–08, following the direction set by the AusAID 2010 Director-General’s blueprint in early 2007. Implementation of the blueprint has brought about significant changes to the way AusAID does business, both in Canberra and overseas, to ensure it has the capacity to deliver an effective, expanded program. Significant progress has been made in terms of the devolution of program and financial management functions to country offices. Regional hub offices under senior executive leadership were established in Bangkok for the Mekong region and Suva for the Pacific. These regional hubs have facilitated the devolution of regional programs and provided increased support to smaller country offices. Corporate service managers have been placed in larger country offices to provide dedicated support across all corporate functions. To support devolved operations, AusAID has continued to strengthen its corporate services and systems covering financial and human resource management and information technology.

6 OVERVIEWS DIRECTOR GENERAL’S REVIEW SECTION

The structure and staffing profile of AusAID’s headquarters have evolved to increase policy development capacity, support policy implementation, and improve knowledge 1 management. Thematic groups, consisting of public servants and technical advisers, now sit alongside program areas to develop sector and cross-cutting policies and to support policy implementation through technical expertise, guidance, and quality review. Thematic groups are contributing to knowledge sharing and professional development by convening thematic networks that connect all staff working on a particular sector or theme in Canberra and overseas.

The year ahead

2008–09 will bring significant opportunities and challenges for AusAID in delivering an increased aid program while maintaining an emphasis on program quality and achieving measurable development outcomes. In this International Year of Sanitation, AusAID will begin implementing the government’s commitment to invest significant additional resources in addressing the critical challenge to health and wellbeing posed by inadequate access to water and sanitation. In addition to implementing the government’s commitment on avoidable blindness, AusAID will finalise consultations in Australia and the Asia-Pacific region on a disability strategy that will be launched in late 2008 to improve the lives of people with disability in developing countries.

In addition to implementing these new commitments, the aid program will continue to make significant investments in strengthening the delivery of health and education services and the provision of key economic infrastructure. Developing a comprehensive response to the global food crisis, with an appropriate balance between short-term humanitarian assistance and long-term measures to boost food security, will be another key priority in 2008–09.

Australia will draw on and contribute to international best practice in development assistance, including by participating in the High Level Forum on Aid Effectiveness in September 2008. The forum is expected to generate an action agenda of key measures that donors and developing countries can implement to refine approaches to capacity building, increase the use of partner government systems and ensure mutual accountability for development results. AusAID will make ongoing improvements to its operating procedures to increase aid effectiveness and to implement new approaches such as the Pacific Partnerships for Development.

AusAID will continue to refine its business model to support effective aid delivery through largely devolved programs while responding to new policy priorities and a changing global and regional operating environment.

7 AUSAID ANNUAL REPORT 2007—2008 1

AGENCY OVERVIEW SECTION Role and functions

Australia’s international development assistance helps developing countries reduce poverty and achieve sustainable development in-line with Australia’s national interest. AusAID advises the government on international development policy and manages Australia’s international development assistance programs. Australia’s aid program is focused on achieving sustained improvements in people’s lives by working with our partners—domestically, internationally and multilaterally—to achieve the Millennium Development Goals.

In carrying out this role, AusAID draws upon its experience in aid and development over more than six decades, particularly in the Asia-Pacific region. In working with our whole- of-government partners, AusAID facilitates an understanding of the factors that contribute to aid effectiveness and sustainability, especially in fragile states. The agency’s practical experience with humanitarian crises and disasters enables it to lead and coordinate quick, flexible and effective responses. Strong relationships with bilateral, multilateral and civil society bodies provide critical insights into the development challenges of the region, both long and short-term, and support Australia’s broader foreign policy agenda.

AusAID and enhanced whole-of-government engagement

Whole-of-government engagement in the delivery of the aid program has evolved to become a way of working for AusAID. At a strategic level, the Development Effectiveness Steering Committee, with deputy secretary representation from central agencies, provides a key whole-of-government coordination mechanism to oversee the effectiveness of the aid program. Most aid delivered to specific developing countries by AusAID is covered by country program strategies. This ensures a coherent policy approach.

At an operational level, the aid program benefits from the expertise of other government departments in aspects of economic policy, public financial management, and law and justice, helping to address the development challenges in our region. Other departments are directly involved in the day-to-day delivery of the aid program. The Regional Assistance Mission to the Solomon Islands and the Strongim Gavman Program (formerly the Enhanced Cooperation Program) in Papua New Guinea are just two examples of this approach. Development assistance issues have also become increasingly interlinked with broader Australian regional and international policy priorities. These include regional security, trade, economic integration, the transboundary threats posed by HIV/AIDS and other communicable diseases, counter-terrorism, illicit drugs and organised crime.

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Organisational structure 1

AusAID is an administratively autonomous agency within the Foreign Affairs and Trade portfolio. The Director General reports directly to the Minister for Foreign Affairs on all aspects of aid policy and operations. The Director General is responsible for the agency’s financial and personnel management.

Figure 1 shows AusAID’s organisational structure at 30 June 2008.

AusAID has continued to restructure to better meet government priorities and to respond to ongoing changes in its operational environment. AusAID 2010—Director General’s blueprint (February 2007) established a model of AusAID with a strengthened central core to provide strategic direction for Australia’s program of overseas aid delivery and to coordinate the joint aid activities of other government departments. AusAID’s overseas presence, primarily in the Asia-Pacific region, has grown to meet the increased need for effective management and implementation of an expanding and diversifying program. The thematic networks (best practice networks for staff working on similar development topics in different program areas) and the Office of Development Effectiveness were established to enhance AusAID’s analytical capacity, and the quality and performance of its programs. These are further supported by a responsive and connected management framework comprised of stronger business systems, processes and controls.

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SECTION Branch Branch Lisa Rauter Jamie Clout Therese Mills Shane McLeod Robert Jackson Finance Branch Information Services Corporate Operations Chief Financial Officer Deputy Director General Chief Information Officer Assistant Director General Assistant Director General People & Planning Branch Corporate Enabling Division Group Steve Hogg Laurie Dunn and Support Robin Davies Andrew Laing Murray Proctor Jacqui De Lacy Economics and Building Branch Service Delivery Senior Associate Senior Associate Operations Policy A/g Alison Chartres Deputy Director General Sustainable Development Governance and Capacity Assistant Director General Assistant Director General Assistant Director General Program Enabling Division Assistant Directors General Branch Bruce Davis Chris Tinning Director General Michael Wilson Alistair Sherwin Catherine Walker Humanitarian and Parliamentary and Middle East Branch Development (AusAID) Deputy Director General Communications Branch Global Programs Division Assistant Director General Assistant Director General Assistant Director General (Humanitarian Coordinator) Development Partnerships Australian Agency for International Group Jakarta Bangkok Ali Gillies Blair Exell Titon Mitra Philippines Asia Division Phillippe Allen Richard Moore A/g Jenny Da Rin Octavia Borthwick (Gender Coordinator) Mekong and Regional Minister Counsellor— Minister Counsellor— Asia Bilateral Branch Asia Regional Branch Deputy Director General Indonesia and East Timor Assistant Director General Assistant Director General Assistant Director General Minister Counsellor—Manila Peter Versegi Assistant Director General Office of Development Effectiveness Honiara Paul Kelly Taskforce Port Moresby Scott Dawson Pacific Branch A/g Rob Tranter Judith Robinson Margaret Callan Margaret Thomas Pacific Partnerships Minister Counsellor— Minister Counsellor— Deputy Director General Pacific and PNG Division Assistant Director General Assistant Director General Assistant Director General Minister Counsellor—Suva Stephanie Copus-Campbell Papua New Guinea Branch FIGURE 1: AUSAID ORGANISATIONAL STRUCTURE AT 30 JUNE 2008 STRUCTURE AT FIGURE 1: AUSAID ORGANISATIONAL Names in colour indicate branch heads that are located overseas.

10 OVERVIEWS AGENCY OVERVIEW SECTION

Outcomes and outputs framework 1

AusAID’s outcomes and outputs framework is shown in figure 2. Appendix B provides the resources summary for the agency’s outcomes.

The agency’s two outcomes were:

Outcome 1—To assist developing countries to reduce poverty and achieve sustainable development, in-line with Australia’s national interest.

Outcome 2—Australia’s national interest advanced by implementing a partnership between Australia and Indonesia for reconstruction and development.

AusAID’s administered items contribute to these outcomes, as do the three agency outputs: policy, program management, and the Australia-Indonesia Partnership for Reconstruction and Development management.

11 AUSAID ANNUAL REPORT 2007—2008 1

FIGURE 2: AUSAID OUTCOMES AND OUTPUTS FRAMEWORK 2007–08 SECTION AusAID Total price of outputs: $109.326 million Total departmental outcomes appropriation: $108.506 million Total administered appropriation: $2 488.4 million Total administered expenses: $2 809.954 million

OUTCOME 1 OUTCOME 2 To assist developing countries to Australia’s national interest advanced reduce poverty and achieve sustainable by implementing a partnership development, in-line with Australia’s between Australian and Indonesia for national interest reconstruction and development Total price: $106.164 million Total price: $3.162 million Departmental outcome appropriation: Departmental outcome appropriation: $102.018 million $6.488 million Total administered appropriation: Total administered appropriation: $2 483.918 million $4.482 million Administered expenses: $2 615.173 million Administered expenses: $194.781 million

OUTPUT 1.1 OUTPUT 2.1 Policy Australia-Indonesia partnership for reconstruction and development management Total price: $20.491 million Total price: $3.162 million Departmental output appropriation: Departmental output appropriation: $19.689 million $6.488 million

OUTPUT 1.2 ADMINISTERED ITEMS Program management Australia-Indonesia partnership program Total price: $85.673 million Appropriation: $4.482 million Departmental output appropriation: Expenses: $194.781 million $82.329 million Capital injection (cash): $2.093 million

ADMINISTERED ITEMS Australia’s development cooperation program Expenses: $2 615.173 million Appropriation: $2 483.918 million Capital injection (cash): $480.640 million

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13 AUSAID ANNUAL REPORT 2007—2008

AusAID Director General, Bruce Davis greets Dr Catherine Hamlin AC, founder and CEO of the Addis Ababa Hamlin Fistula Hospital in March 2008. The occasion marked Australia’s agreement to Catherine Walker, AusAID’s Deputy Director General, at provide $2 million in 2007–08 to fund the work of the launch of The shack and dialogues—understanding the hospital in treating women with obstetric fistula. tuberculosis, an exhibition at Parliament House, This will bring to more than $5.7 million Australia’s Canberra, sponsored by AusAID and Results Australia support for the hospital since 1993 in March 2008 Photo: Kim Biedrzycki Photo: Eddison Photographics

Opposite » Murray Proctor, Australia’s Ambassador for HIV/AIDS, delivered the Australian statement at the high-level meeting on AIDS at the United Nations headquarters in New York on 11 June 2008. The meeting reviewed progress made in implementing the 2001 Declaration of Commitment on HIV/AIDS and the 2006 Political Declaration on HIV/AIDS Photo: Kay Hull

14 REPORT ON PERFORMANCE Section 2

Effectiveness against outcomes Administered programs Output 1.1—Policy Output 1.2—Program management Output 2.1—Australia-Indonesia Partnership for Reconstruction and Development Financial results AUSAID ANNUAL REPORT 2007—2008

EFFECTIVENESS AGAINST OUTCOMES

Assessing performance

AusAID’s annual report for 2007–08 draws on information generated from its new

2 performance assessment and evaluation policy. The new policy follows a review of the performance assessment framework trialled in 2006–07, and outlines how information from across the aid program will be collected to report on performance against the agency’s outcomes.

Reports on performance provide the Minister, parliament, public and partners with

SECTION information on results achieved with Australian funds and help inform the Annual Review of Development Effectiveness produced by the Office of Development Effectiveness (ODE).

Annual Review of Development Effectiveness 2007—key findings

• Australia provides more aid as a proportion of total assistance to fragile states than any other Organisation for Economic Co-operation and Development (OECD) Development Assistance Committee (DAC) donor. Fragile states are characterised by weak capacity and are prone to conflict and instability. Results from aid in such environments are harder to achieve than in other developing countries. • Australian aid activities are well managed and achieving some good results. More than three-quarters were on track to achieve their objectives in 2006–07. Independent reports confirm a wide range of achievements, from better budgeting to stronger service delivery in infrastructure, health and education. However, it is difficult to demonstrate the links between well-managed activities and better outcomes for the poor. To help measure the outcomes of Australian aid activities, the quality of monitoring and evaluation needs to be improved. • Country programs exhibited strong management, were responsive and had established good links with partner governments. Australian aid is becoming more consistent with partner government policies and is more aligned with the efforts of other donors. But it can be hard to detect whether programs are on track to meet their strategic objectives. In part this is due to poor definition of objectives and, on occasion, weak commitment to change in partner governments. • There are five areas where effectiveness could be strengthened: i) broadening the ways Australia engages with fragile states ii) supporting reform in the larger Asian economies iii) getting the most from technical assistance iv) strengthening further the performance orientation of the aid program v) meeting gender equality commitments.

16 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

The performance assessment and evaluation policy supports three types of performance reports: annual performance reports, the quality reporting system, and evaluations.

Annual performance reports

In 2007–08, annual performance reports covered 19 bilateral and regional country SECTION programs and were trialled for six thematic areas, as well as for multilateral organisations. The reports describe the performance of the program over the reporting period, including against country or regional strategy objectives. They also identify tangible actions that can be taken to improve effectiveness by addressing a standard set of three questions:

• What are the results of our aid program? 2 • What is the quality of our aid activities? • What are the management consequences of this assessment?

Quality reporting

The quality reporting system reports on activity level quality at three points: entry, during implementation and on completion. Quality is assessed against five quality principles, namely that all activities are expected to: • achieve clearly stated objectives that contribute to higher-level objectives in the program strategy • effectively measure progress towards meeting objectives • continually manage risks • appropriately address sustainability of results, with due account of partner government systems, stakeholder ownership and phase out • be based on sound technical analysis and continuous learning.

Quality reporting for activities is mandatory for all substantive, monitored aid activities. A monitored aid activity is where: • the expected Australian Government funding over the entire life of the activity is greater than $3 million, or • the value is less than $3 million, but the activity is significant to country or corporate strategies or key relationships with other development partners including whole-of- government partners.

Quality at entry reports reflect on the quality of new activity designs against the five quality principles above. The reports are used to determine if further design work (and peer review) is necessary, and to identify issues for monitoring during implementation.

Quality at implementation reports provide managers and corporate areas with information on the quality of activity implementation. They also provide an opportunity to periodically reflect on the key issues relating to quality. The reports are used to generate statutory annual corporate performance information.

17 AUSAID ANNUAL REPORT 2007—2008

Quality at completion reports record the findings of independent completion reports, an end of activity evaluation which also rates the activity against the five quality principles listed above.

AusAID aims for a target of 75 per cent or more of funded activities or organisations achieving an overall quality rating of satisfactory or higher for quality at implementation. 2

Activities are rated using a six-point scale grouped into two categories: • satisfactory—very high quality, good quality or adequate quality • unsatisfactory—less than adequate quality, poor quality or very poor quality.

The reliability of the ratings is assessed through a variety of means, including spot-

SECTION checking and peer reviews.

Evaluation

Evaluations and reviews generate evidence to demonstrate the effectiveness of significant programs and initiatives and enable management to make informed decisions about the future. Large-scale thematic evaluations are conducted by the ODE including on topics arising out of the Annual Review of Development Effectiveness. Examples of ODE evaluations recently completed or in progress include: • approaches to anti-corruption • initiatives to address violence against women in Melanesia • service delivery in health, education, water supply and sanitation • an impact assessment of HIV/AIDS programs in Papua New Guinea • assistance to middle income countries.

Reviews of country strategies are also key to developing new country strategies. The ODE conducts reviews of the larger country programs while playing a quality assurance role on reviews of smaller programs undertaken by program areas.

AusAID program areas also commission independent evaluations in response to program specific issues.

Inclusive development: disability in Australia’s aid program

It is widely recognised that people with disability are among the poorest and most vulnerable in developing countries. The United Nations estimates that approximately 10 per cent of the world’s population, or about 650 million people, are living with disability and that about 80 per cent of those with disability live in developing countries1. For many, including children, the causes of disability are preventable and the impacts of impairments can be greatly reduced through changes in attitudes and the physical environment, the right information, services, and equipment.

1 UN Secretariat Disability Paper (E/CN.5/2008/6 available at www.ods.un.org).

18 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

Disability prevents people from participating fully in society by restricting access to health services, education, employment and decision-making. This in turn is a major contributor to the level of poverty which people with disability experience, particularly those in developing countries. Women and girls with disability living in developing

countries can be further disadvantaged due to discrimination based on both their SECTION gender and disability. Disability also impacts on families and carers, impeding opportunities for them to participate in society and lift themselves out of poverty.

The Australian Government has outlined its firm commitment to including people

with disability in the development process. A comprehensive disability strategy is 2 being developed to guide Australia’s aid program that will build on existing efforts to address the needs of people with disability in the region. The strategy is being prepared in close consultation with key regional and Australian stakeholders, including people with disability and their representative organisations. It will ensure that disability issues are considered and addressed through major aid programs, identify targeted initiatives to meet the specific needs of people with disability, and improve understanding of disability and its links to poverty. In this way, the aid program will ensure that development equally benefits people with disability and helps alleviate poverty, and that the Millennium Development Goals are achieved.

As a part of the disability strategy, the Australian Government is also developing a program to address avoidable blindness in the Pacific and Asia. Up to 75 per cent of blindness is treatable or preventable and more than half of the world’s 160 million people who are visually impaired live in Asia and the Pacific2. Australia’s Avoidable Blindness Initiative will focus on improving diagnosis, prevention and treatment of vision impairments as well as strengthening existing eye care training institutions and the capacity of health care workers in the region.

Australian VIDA volunteer Michelle Malone at work as an inclusive education advisor at the Senese School for children with disabilities in Apia, Samoa in May 2008 Photo: Kristen Pratt

2 IAPB, Vision 2020: The Right to Sight (2005) State of the world’s sight 1999–2005. WHO Press, 2005, 9–11.

19 AUSAID ANNUAL REPORT 2007—2008

EFFECTIVENESS—OVERALL ACHIEVEMENT OF OUTCOMES

Outcome 1—To assist developing countries to reduce poverty and achieve sustainable development, in-line with Australia’s national interest. 2 At the level of individual aid activities, AusAID achieved its overall target with more than 75 per cent of activities receiving a quality rating of satisfactory or higher. Out of 358 reports on quality at implementation for aid activities over $3 million, 86 per cent were rated satisfactory on the achievement of objectives according to AusAID’s six-point scale below: SECTION

Satisfactory Less than satisfactory

6 Very high quality; needs ongoing 3 Less than adequate quality; needs work to management and monitoring only improve in core areas

5 Good quality; needs minor work to 2 Poor quality; needs major work to improve improve in some areas

4 Adequate quality; needs some work 1 Very poor quality; needs major overhaul to improve

The reliability of ratings is assessed through a variety of means, including spot-checking and peer reviews.

At the level of country or regional programs however, it is difficult to detect whether successful activities have translated into broader improvements in sectors where the aid program works. This is also the experience of other donors and significant effort is being devoted to obtaining a better understanding of these broader impacts which are inherently more difficult to detect. Performance at the level of country or regional programs is assessed through recently introduced annual program performance reports and independent evaluations. Results at both activity and program level are analysed in detail in the Office of Development Effectiveness’ Annual Review of Development Effectiveness.

Outcome 2—Australia’s national interest advanced by implementing a partnership between Australia and Indonesia for reconstruction and development.

AusAID achieved its overall target with more than 75 per cent of activities receiving a quality rating of satisfactory or higher.

Total Australian official development assistance

Figure 3 shows total estimated Australian official development assistance (ODA) in 2007–08 across major regions. The estimated sectorial breakdown of Australian ODA is shown in figure 4. Appendix C provides a more detailed breakdown of Australia’s expenditure on overseas aid.

20 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

FIGURE 3: ESTIMATED TOTAL AUSTRALIAN ODA 2007–08

Papua New Guinea Indonesia and and Pacific (28%) East Asia (30%) SECTION

South Asia (4%)

Multilaterals and Africa (3%) other ODA (28%) Midde East and Central Asia (7%)

FIGURE 4: ESTIMATED TOTAL AUSTRALIAN ODA BY SECTOR 2007–08

Environment (3%)

Education (13%) Governance (25%)

Rural development (6%)

Infrastructure (10%)

Multi sector (15%)

Humanitarian and emergency relief (11%) Health (17%)

21 AUSAID ANNUAL REPORT 2007—2008

PERFORMANCE AGAINST DEVELOPMENT OBJECTIVES

The Australian aid program aims to reduce poverty and promote sustainable development in-line with Australia’s national interest. Poverty and sustainable development are multi-dimensional, encompassing economic and social development and, increasingly,

2 environmental sustainability.

The Millennium Development Goals (MDGs) are the key development outcomes that the international community has committed to achieve by 2015. The MDGs specify targets on poverty reduction, health, education, gender, water and sanitation, and the environment. Australia’s contribution to the MDGs and other enabling development outcomes such as SECTION better governance is outlined below3.

Broad-based growth (MDG 1: eradicate extreme poverty and hunger)

Inclusive growth is crucial to increasing employment opportunities and income for the poor while generating revenue to support the delivery of basic services. Australian efforts to increase inclusive growth include investments in infrastructure, programs to improve agricultural productivity, technical assistance and financial incentives to support competition reform, land reform initiatives, support for pro-poor business development and funding to mitigate emerging threats to food security.

Key achievements in 2007–08 included: • investing $85.1 million through substantial new infrastructure programs in the areas of transport, water and energy to raise people’s living standards by promoting access to markets and vital services. Through bilateral programs and through programs co-funded with other donors and international financial institutions, Australia increased investments in infrastructure, and strengthened regional integration, public-private partnerships, policy and regulatory frameworks and productivity. In Papua New Guinea, the length of priority roads that are in good condition has increased by 22 per cent since 2005. Australia began new projects during the year to upgrade road connections across the Mekong region, in Indonesia, East Timor and in the Philippines. In Vietnam, Australian assistance over several years has now enabled access to clean water for an additional 760 000 people and improved sanitation facilities for 530 000 people • targeting support to low income households, including more than 28 000 households (or 127 000 people) in Misamis Occidental, one of the Philippines’ poorest provinces, with a range of projects to improve the livelihoods of vulnerable groups and the poor. In Solomon Islands, nearly 3000 households are part of a network for farmer groups distributing improved subsistent root crop varieties across eight of the nine provinces. These projects have generated significant smallholder buy-in, tested and strengthened partnerships between farmers, civil society, the private sector and government, and shown significant potential to deliver sustainable impact, using local networks and knowledge through a local organisation

3 For discussion on issues around assessing the effectiveness of Australian aid explanation, see Annual Review of Development Effectiveness 2007 Office of Development Effectiveness, AusAID, Australian Government, tabled in Parliament on 20 March 2008.

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• helping Vanuatu implement several recommendations from the 2006 National Land Summit, which will strengthen the operating environment for the private sector, government and the community. Over the remainder of 2008, AusAID will prepare a major new project in land reform for implementation from 2009 • supporting improved and more affordable information and communications technology services in Vanuatu. Telecommunication market outcomes affect the growth prospects SECTION of many sectors of Vanuatu’s economy, particularly tourism, agriculture and financial services. In 2007 the Vanuatu Government embarked on a managed transition from self regulation by an incumbent monopoly towards regulation by an independent authority, market liberalisation and subsidised rollout of services to new areas. In

2007–08, AusAID’s Governance for Growth program supported Vanuatu in this process 2 by providing technical assistance and financial incentives for timely introduction of necessary reforms. New competitors are now setting up and prices have already started to fall. Mobile coverage is expected to surge from 20 per cent to 90 per cent by the end of 2009, bringing with it considerable growth benefits • supporting the delivery of basic infrastructure and social services to poor people in developing countries through output-based aid projects. In 2007–08, AusAID became a contributing member of the World Bank-led Global Partnership on Output Based Aid. Projects under the partnership that have been completed or are currently underway are expected to benefit a total of 2.8 million people. In Indonesia, payments will be provided for the piped water supply to be extended to 15 500 poor households. This will save time and money for households otherwise reliant on alternative supplies, and benefit their health with better water • continuing support for developing country participation in the global trading system and trade liberalisation through Aid for Trade activities, which address trade-related needs such as policy and regulation, infrastructure and building productive capacity. AusAID significantly increased its Aid for Trade commitments from approximately $154 million in 2006–07 to $325 million in 2007–08. Its contribution to the World Trade Organization’s Doha Development Agenda Global Trust Fund also doubled to $1 million in 2008. This fund helps finance trade-related technical assistance that improves the ability of developing countries to participate in the Doha Round of international trade negotiations • commiting $30 million in emergency assistance to the World Food Programme on 1 May 2008 to help countries affected by steep rises in the price of essential food supplies. Rising food prices have put many households in developing countries at risk of falling into greater poverty and hunger. A comprehensive action plan for long-term food security measures is being developed which will outline how Australia will lift its engagement in international efforts to address the root causes of food insecurity in developing countries, through increased development assistance, constructive participation in multilateral processes and continued advocacy for international trade policy reform.

23 AUSAID ANNUAL REPORT 2007—2008

MDG 1: eradicate extreme hunger and poverty

MDG 1 has two targets: to halve, between 1990 and 2015, the proportion of people living on less than US$1 a day, and to halve, between 1990 and 2015, the proportion of people who suffer from hunger. 2

What progress is being made on US$1 a day poverty reduction? The world is likely to achieve this MDG target. As shown below, the percentage of people living on less than US$1 a day has fallen from 29 per cent in 1990 to 18 per cent in 2004 and is expected to fall further to 10 per cent in 2015. The number of extreme poor has

SECTION fallen by about 280 million between 1990 and 2004 to just under one billion.

1990 2004 2015 1990 2004 2015 Percentage of people living Number of people living on on less than US$1 a day less than US$1 a day (millions) East Asia and the Pacific 29.8 9.1 2.0 476 169 40 South Asia 44.3 34.3 17.6 376 371 217 Europe and Central Asia 0.5 0.9 0.3 25 4 2 Middle East and North Africa 2.3 1.5 0.7 5 4 2 Sub-Saharan Africa 46.7 41.1 31.4 240 298 290 Latin America and the Caribbean 10.2 8.6 5.5 45 47 34 Total 28.7 17.1 10.2 1247 970 624

Source: World Bank (2008) Global Economic Prospects.

Measuring and dispensing AusAID funded foodstuffs on the outskirts of Banda Aceh Photo: M Anshar

24 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

The global numbers mask regional variation. Most of the world’s poverty reduction over the last decade has taken place in Asia, especially East Asia, and Asian poverty is now becoming concentrated in South Asia. Meanwhile, Africa and the Pacific are lagging. Strong growth can help these countries—some economists

estimate that 80 per cent of the poverty reduction over the last decade is due to SECTION economic growth. And we are now starting to see faster growth in many African countries, South Asia and some Pacific islands.

Australia focuses its aid on the Asia-Pacific region—based on our comparative

advantage and where we can have impact. In Asia, AusAID is helping countries to 2 support faster and more inclusive growth, and targeting poorer countries and lagging regions. For example, about half of our aid to the Philippines goes to the poorest province (Mindanao) where more than 60 per cent of the population is poor. In the Pacific, the largest aid programs are in the countries with the largest number of poor people such as Papua New Guinea and the Solomon Islands. Throughout the Pacific, the aid program helps to address the drivers to growth and poverty reduction, including macroeconomic stability, security, and access to finance.

Education (including MDG 2: achieve universal primary education)

Australia supports countries to improve their education systems to enable all children to complete a primary education and progress to higher levels of education.

Key achievements in 2007–08 included: • training more than 9000 teachers and government officials in Asia and the Pacific to improve their skills, knowledge and capacity to deliver education services • constructing over 380 junior secondary schools in Indonesia • printing and distributing around one million text books to schools in Asia • installing clean water and sanitation systems in over 500 schools in Laos • enrolling 529 students in the new Australia Pacific Technical College, 69 of whom have already graduated with world-class technical qualifications.

Australia is also a board member and supporter of the Education For All Fast Track Initiative. This international partnership provided over US$249 million in 2007–08 to seven developing countries, Benin, Cambodia, Mali, Mauritania, Mongolia, Mozambique and Sierra Leone, to accelerate progress towards universal primary education.

In 2007–08, the Australian Government invested about $200 million on basic and vocational education through bilateral and regional programs, and the Education for All Fast Track Initiative. This accounted for 8 per cent of total official development assistance expenditure.

The predictability of Australian education assistance was improved through a four-year $540 million multi-country budget allocation announced in the 2007–08 Australian aid budget. This has facilitated multi-year funding commitments with governments in East

25 AUSAID ANNUAL REPORT 2007—2008

Timor, Nepal and the Philippines, with the United Nations Children’s Fund in Bangladesh and Burma, and with the World Bank as the initiative’s trustee.

Australia’s education policy will continue to focus on assisting countries to achieve the Education for All and Millennium Development Goals within feasible and sustainable timeframes. 2

Many new activities and approaches which began and were implemented during 2007–08 provide a solid foundation for further increased assistance. Australia now delivers education development assistance through an increasing number of ways. Over the last 12 months, Australia has become involved in a number of multi-partner arrangements aimed at accelerating progress towards education outcomes. For example, this year SECTION Australia joined the Poverty Reduction Support Operation Program in Laos and has a lead role in supporting the Lao Government to develop a multi-donor sector wide approach. These more coordinated and cooperative approaches ensure that all investment in the sector is focused on achieving common goals.

FIGURE 5: ESTIMATED TOTAL AUSTRALIAN ODA ON EDUCATION 2007–08

Scholarships (27%) Other education (41%)

Basic education (11%)

Secondary and Technical and vocational higher education (11%) training (10%)

26 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

MDG 2: achieve universal primary education

Many developing countries are making good progress in increasing access to education. Today there are 24 million fewer primary-age children out of school than

in 1999. There are still 72 million children out of school however, with 26 million of SECTION these in Asia and the Pacific.

Australian education development assistance helps countries improve their education systems to get more children to complete primary school and progress

to higher levels of education. The focus of this assistance during 2007–08 included teacher training, school building, printing and distributing text books, 2 providing clean water and sanitation in schools and supporting the Australia Pacific Technical College.

A special focus of Australian education development assistance is helping countries to address inequalities that keep children out of school, including gender, wealth disparities and geography. In the Philippines and Indonesia, good progress has been made towards universal primary education but the remaining out-of-school children come from the poorest households and suffer from malnutrition, poverty and limited educational and employment opportunities.

For these marginalised children, the Australian Government has been working with government and communities to improve education outcomes. In Aceh and Mindanao, teachers have been specially trained to work in classrooms with conflict- affected children. Additional training has also been provided to teachers working in Madaris and Madrassah (Islamic schools). In 2007–08, Australia also supported the establishment of the Philippines Institute for Indigenous People’s Education, which offers teacher training and curriculum materials tailored to the needs of local Indigenous children.

A student at a government primary school in Rangpur, North-West Bangladesh. In recent years Bangladesh, with support from donors including Australia, has increased the number of girls in primary school to achieve gender parity. This is an important milestone on the path to equity in access to education Photo: Peter Duncan-Jones

27 AUSAID ANNUAL REPORT 2007—2008

Gender equality (MDG 3: promote gender equality and empower women)

Australia takes a comprehensive approach to promoting gender equality and empowering women. This support extends beyond improving women’s political participation, employment, education and literacy rates. Other factors such as violence against women, maternal mortality, HIV/AIDS, conflict and people trafficking must also be addressed. 2

Key achievements in 2007–08 included: • supporting voter education for Papua New Guinea’s 2007 national elections which promotes messages on women’s rights to stand as candidates and to an independent vote. With Australian support to improve women’s access to justice, the national

SECTION court now allocates one day a week to hear gender violence cases and a victim support network helps women through the court process. Legislative amendments to the criminal code have made rape within marriage a crime. In the Key Roads for Growth program, incentives have been built in to ensure women’s participation in road maintenance with 30 per cent of road workers now women • supporting the Philippines-Australia Community Assistance Program to promote gender equality and empowerment of women through projects dealing with violence against women and children, as well as to promote women’s involvement in decision-making and local government. Approximately 63 per cent of the program’s beneficiaries are women and about three quarters of its activities have made a contribution to MDG 3 • launching a new $6.2 million program to improve women’s leadership in the Pacific. The program will train women at a local level in governance and leadership issues, undertake research on the barriers and successful pathways to women’s leadership, and develop communication and training materials for use in the region • supporting the Indonesian Government to improve the quality and management of education for boys and girls, who are now attending school in equal numbers. The program to build 2000 schools is helping girls to attend school by providing separate toilets and change rooms. Australia is also helping Indonesia to address gender bias in education curricula and teacher training, promote women teachers to school principal positions and increase women’s participation in school management committees. Support was provided to develop regulations and textbooks on gender in education in the state sector and a gender strategy in the Islamic education sector.

MDG 3: promote gender equality and empower women

MDG 3 has three indicators for measuring its progress: the ratio of girls to boys in primary, secondary and tertiary education, the share of women in wage employment in the non-agricultural sector and the proportion of seats held by women in national parliament.

There has been considerable progress against the first indicator with many Asia-Pacific countries close to gender parity in primary school enrolments.

28 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

Progress has not been as strong on the second indicator. In 2005, although the share of women in wage employment improved in South-East Asia and the Pacific, women still make up 60 per cent of unpaid family workers in agriculture globally, lacking access to job security and social protection. SECTION While the level of women’s political representation at the national level in Asia sits at nearly 17 per cent (about the international average), the average representation of women in national parliaments in Pacific island states was only 3.5 per cent in 2006.

Gender equality is not only an MDG in its own right but is also important for 2 achieving all of the MDGs. Economically engaged women are primary actors in addressing extreme poverty and are more likely to ensure their children are educated. Educated mothers also have lower infant mortality rates.

The Australian aid program has a strong policy framework for gender equality. In 2007–08, processes for monitoring gender equality results were strengthened and a gender coordinator was appointed to further strengthen the integration of gender through the program. Gender equality issues are increasingly being addressed in program design, particularly through better analysis, and programs are doing better at measuring their contributions to gender equality.

A regional campaign before an election to encourage more women into politics, Tuvuvur, Papua New Guinea Photo: Rachel Moore

29 AUSAID ANNUAL REPORT 2007—2008

Health and HIV (including MDGs 4, 5 and 6: reduce child mortality, improve maternal health and combat HIV/AIDS, malaria and other diseases)

Australian development assistance on health and HIV is focused on helping countries develop better quality, cost effective and community focused health systems that are sustainable, lead to better health outcomes in the long-term, and are able to tackle major 2 diseases such as HIV, malaria and potential pandemics.

The program concentrates on helping those most in need, particularly women and children, with a strong focus on primary health care and disease prevention.

Key achievements for 2007–08 included: SECTION • providing sustained support to health training institutions in the region, including the Papua New Guinea School of Medicine and Health Sciences, and Fiji School of Medicine, to train skilled health workers for the region • joining the new International Health Partnership aimed at accelerating achievement of the health MDGs with a coordinated approach to building sustainable health systems that support service delivery • expanding work in children’s health to South Asia, with new funding strengthening national and sub-national capacities in Bangladesh, Pakistan and Nepal to deliver essential neonatal and child health services • launching the Sexual and Reproductive Health Program in Crisis and Post Crisis Situations in East and South East Asia as well as the Pacific. This program aims to reduce maternal deaths, prevent unintended pregnancies and reduce HIV transmission in crises such as in Burma following Cyclone Nargis and in China following the Sichuan earthquake • helping conduct a major malaria survey in Vanuatu as part of a commitment to eliminate malaria in the Pacific, and working with Pacific countries to integrate Global Fund to Fight AIDS, Tuberculosis and Malaria grants with regional efforts to eliminate malaria • launching the Australia-Indonesia Partnership for HIV, a new program with a focus on leadership, harm reduction and prisons, and targeting assistance for responses to the epidemic in Papua and West Papua provinces • launching the HIV/AIDS Asia Regional Program, which aims to reduce the spread of HIV associated with injecting drug use by scaling-up harm reduction responses in six Asian countries • increasing access to HIV testing and treatment services in Indonesia, Papua New Guinea, Vietnam and China through a partnership with the Clinton Foundation.

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FIGURE 6: ESTIMATED TOTAL AUSTRALIAN ODA ON HEALTH 2007–08

Sexually Trans Diseases SECTION inc. HIV/AIDS (28%)

Basic Health Care (41%)

Population Policies and Reproductive Health (6%)

Medical Education, Health Governance (21%) Research and Services (4%)

MDG 4: reduce child mortality

MDG 4 aims to reduce the under-five mortality rate by two-thirds between 1990 and 2015. Globally, child mortality has fallen to a record low, from 13 million in 1990, down to 9.7 million in 2007 4. However, with half of the world’s under-five deaths occurring in the Asia-Pacific region each year, there is an urgent need for increased action to achieve MDG 4.

The Australian aid program has a strong focus on addressing the priority health needs of children. Australia supports a number of international health organisations with a focus on child health programs, including the World Health Organization, United Nations Children’s Fund and the GAVI Alliance, as well as partner governments, non-government organisations and other stakeholders.

In the Philippines, Australia is a major contributor to UNICEF’s Country Program for Children. This program has fully immunised 82 per cent of children (213 059 aged zero to 11 months) in specific provinces from common vaccine-preventable diseases, and around 700 000 children in high-risk areas. Approximately 26 000 school children in 70 public schools and their communities gained better access to safe drinking water and sanitation facilities.

New funding in 2007–08 allowed Australia to expand work in children’s health to South Asia, where child health indicators are among the worst in the world.

4 UNICEF (2007). “Child deaths fall below 10 million for the first time”, UNICEF press release, 13 September 2007

31 AUSAID ANNUAL REPORT 2007—2008

In Nepal, 6232 female community health volunteers were trained to provide pneumonia and diarrhoea treatment in AusAID supported districts, 1200 health facility staff were trained on case treatment protocol, and 2441 children were treated for pneumonia at home by the volunteers in the AusAID supported districts. Pneumonia and diarrhoea are major killers of children in Nepal. 2

In 2007–08, Australia contributed $5.2 million in core funding to the GAVI Alliance, a public-private partnership to increase access to vaccines for children in poor countries. Projections for the period 2000–2007 show that the alliance has averted 2.9 million deaths through vaccination, 36.8 million children have been supplied

SECTION with basic vaccines and 176 million additional children have been protected with new and underused vaccines.5

Operation Open Heart brings together Papua New Guinea surgeons with Australian cardiac thoracic specialists to cure babies in Papua New Guinea of heart defects. Since Operation Open Heart’s inception in 1993, the skills transfer has been so great there are now a handful of Papua New Guinea surgeons who can carry out closed and open heart surgery confidently and independently Photo: Andrew Tully

5 GAVI website

32 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

MDG 5: improve maternal health

MDG 5 aims to reduce by three-quarters between 1990 and 2015 the maternal mortality ratio. To date, MDG 5 is the furthest from being achieved. Maternal

mortality levels remain unacceptably high across the developing world, particularly SECTION in sub-Saharan Africa and Southern Asia. Each year, more than 500 000 women die from treatable or preventable complications of pregnancy and childbirth6.

The Australian aid program has a strong focus on addressing the priority health needs of women. There is a particular focus on maternal health, reproductive and

sexual health, access to safe and effective contraception based on informed choice, 2 nutrition and education for girls.

AusAID has established partnerships and funding arrangements with a range of partner governments, multilateral agencies, non- government organisations and other stakeholders to address maternal mortality in our region. AusAID currently funds maternal and reproductive health activities in a number of countries, including Indonesia, East Timor, Cambodia, Nepal, Pakistan, Philippines, Bangladesh, Ethiopia, China, Afghanistan, Kiribati, as well as throughout the Pacific. In 2007–08, AusAID also provided funding to the Partnership for Maternal, Newborn and Child Health, which consists of more than 240 member organisations working to achieve MDGs 4 and 5.

Sibange Goret and her three month old baby Weetera, Gizo, Solomon Islands, September 2007 Photo: Rod Maccoll

6 UN, Millennium Development Goals Report, 2007.

33 AUSAID ANNUAL REPORT 2007—2008

In 2007–08, the Australian Government continued to support, for its 16th year, Save the Children’s Primary Health Care project in Sayaboury Province, Laos, which is focused on improving the health outcomes for women and children. Nationally Laos has a high maternal mortality rate but in 2007, there were no reported maternal deaths in Sayaboury province. This project has enabled the province to 2 meet their targets for MDG 4 and 5 and the project team were awarded a United Nations Development Award for contribution to maternal and child health in 2007.

AusAID funded training for midwives in Indonesia to become trainers for normal delivery care courses. In Afghanistan, AusAID supported the International Federation

SECTION of Red Cross and Red Crescent Societies to provide maternal and child health services to approximately 110 000 women and children.

AusAID also provided funding to the United Nations Population Fund’s Pacific island country program, which will focus on contributing to substantial development and a better quality of life in Pacific island countries by integrating population, reproductive health and commodity security.

MDG 6: combat HIV/AIDS, malaria and other diseases

HIV, malaria and tuberculosis remain major concerns for the Asia-Pacific region. While some progress has been made in meeting MDG 6, new trends in HIV infections, high malaria prevalence in some countries and a re-emergence of tuberculosis through co-infection with HIV, mean continued leadership and effective action is needed.

Australian HIV funding doubled over the last two years to an estimated $115 million in 2007–08.

In Asia, the Australian response to date has followed international best practice by targeting services for populations most at risk with a particular emphasis on harm reduction services for people who inject drugs. This approach is especially important for countries in the Asia-Pacific region with low HIV prevalence and concentrated epidemics.

In Papua New Guinea, a new comprehensive approach to address HIV has begun (Sanap Wantaim $100 million, 2007–2010). The program is working through government systems, civil society and the private sector to prevent the spread of HIV and improve access to treatment, care and support for people living with HIV and AIDS.

HIV outcomes have been strengthened through partnerships, advocating for policy change and leveraging funding. These partnerships are broad in scope and interest, and include business (such as the Asia Pacific Business Coalition on AIDS), public- private partnerships (including the Global Fund to Fight AIDS, Tuberculosis and

34 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

Malaria, and the Clinton Foundation HIV/AIDS Initiative), international organisations (including the Joint United Nations Programme on HIV/AIDS), civil society organisations and affected communities (such as the Asia Pacific Network of People Living with HIV/AIDS). SECTION Australia increased its strong support for the Global Fund to Fight AIDS, Tuberculosis and Malaria, providing $45 million in 2007–08.

AusAID is funding the Institute of Medical Research Goroka to look at Papua New Guinea’s biggest health concerns—pneumonia, malaria, peri-natal conditions, tuberculosis, meningitis and HIV/AIDS Photo: Jacqueline Smart

Environment and climate change (MDG 7: ensure environmental sustainability)

In 2007–08, the international development assistance program increased its focus on environmental sustainability. The aim is to establish a more proactive approach to aid delivery, which ensures programs avoid damage to the environment and that opportunities are sought to improve the environment.

Key achievements in 2007–08 included: • launching the International Forest Carbon Initiative in April 2008, which aims to demonstrate that reducing greenhouse gas emissions from deforestation and forest degradation can be part of an equitable and effective international agreement on climate change. Prime Minister Kevin Rudd launched high-level forest carbon partnerships with the leaders of Papua New Guinea and Indonesia in March

35 AUSAID ANNUAL REPORT 2007—2008

and June 2008. Under the Indonesia partnership, the initiative will support the development of the Kalimantan Forest and Climate Partnership, the first large-scale demonstration activity of its kind in the world, which aims to reduce emissions from deforestation and peatland degradation in central Kalimantan • providing $32.5 million in joint initiatives with international organisations to support climate adaptation and mitigation measures. This funding was aimed at making 2 better use of water resources, reducing flood risk and providing other support to help countries in the Asia-Pacific to: — adapt to climate change — increase access to reliable, clean and affordable energy

SECTION — participate in the United Nations Climate Change Convention negotiations — conduct research on climate change challenges in the region • supporting key multilateral agencies to address environmental issues such as climate change, loss of biological diversity, land degradation and the cooperative management of international waters. Contributions also aimed to support efforts of poor and vulnerable countries, including Pacific island countries, to adapt to climate change and support developing country participation in United Nations climate change negotiations from 2007 to 2009 • helping to develop a new International Climate Change Adaptation Initiative, to be delivered jointly with the Department of Climate Change. The government will invest $150 million over three years through this initiative to meet high-priority climate adaptation needs in vulnerable countries in our region, particularly Australia’s neighbouring island countries. Activities will be coordinated with the adaptation activities of other donors and multilateral agencies in partner countries, particularly in the Pacific. The initiative will support a significant increase in Australia’s contributions to multilateral financial mechanisms for climate change adaptation • a contribution of $1.7 million for the Water Quality Initiative which ended in 2007–08 after successfully delivering water safety plans and preventing arsenic contamination of drinking water in South Asia, the Mekong River Basin, the Philippines and Pacific region. For example, in Laos, over 2000 groundwater sources are being monitored for arsenic and other contamination to ensure safe water supplies in 17 provinces.

36 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

MDG 7: ensure environmental sustainability

MDG 7 specifically targets the integration of sustainable development into country policies and programs to reverse the loss of environmental resources. Australia is

supporting environmentally sustainable development through a range of programs at SECTION the country, regional and global levels.

In 2007–08, AusAID managed the Climate Change Partnerships Initiative, the International Forest Carbon Initiative (with the Department of Climate Change),

made contributions to multilateral environment programs and contributed to the development of the International Climate Change Adaptation Initiative for 2 implementation in 2008–09.

MDG 7 also aims to reduce by half the proportion of people without access to safe drinking water and basic sanitation by 2015. In 2007–08, Australia maintained previous levels of support to improve access to safe drinking water and sanitation. This included South Asia, the Mekong River Basin, the Philippines and the Pacific region. For example, just one water safety plan pilot project in Hyderabad, India, has removed contamination risks from faulty pipes for 5000 households. Projects such as the Cuu Long Delta rural water supply and sanitation project have supplied safe water and sanitation to over 350 000 people in the Mekong Delta.

The third target of MDG 7 is a significant improvement in the lives of at least 100 million slum dwellers. In 2007–08, Australia enhanced global efforts to improve the lives of slum dwellers by supporting the World Bank-led Cities Alliance. The alliance provides matching grants to improve conditions in the slums and has resulted in the promotion of secure tenure, access to shelter, finance and policies to help cities prevent the growth of new slums.

Australia will work with governments and local communities in Kalimantan, Indonesia to trial approaches to reducing deforestation, helping to cut greenhouse gas emissions Photo: Ruandha Agung Sugardiman

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Governance

Good governance is crucial to the achievement of all MDGs, broad-based growth, stability and better service delivery. This is particularly the case in fragile states. Australian support focuses on improving economic and financial management, strengthening law and justice, increasing public sector effectiveness, developing civil society, and improving 2

democratic processes.

Key achievements in 2007–08 included: • almost doubling the amount of performance-linked aid to just over $70 million. This aid aims to support economic policy and institutional reform leading to better

SECTION economic growth prospects and improved delivery of basic services. AusAID implemented performance-linked programs in the Philippines, Tonga, Vanuatu and Samoa and continued its involvement in Papua New Guinea and Vietnam • supporting Papua New Guinea to improve budget preparation and execution, which was reflected in higher scores against these categories in an independent review of the country’s public expenditure and financial accountability systems. Increased capacity of Solomon Islands Ministry of Finance and Treasury staff and systems is evident by new payroll and financial management systems being developed, and an automated customs system being introduced. Local staff are now leading projects such as budget development and corporate planning • supporting formal and customary court systems in Papua New Guinea, which has improved access to justice across the country including a 170 per cent increase in the number of cases registered with district courts, a 6 per cent increase in the number of village courts, and 18 new women village court magistrates being appointed and trained in 2007. In Solomon Islands, remand times were more than halved in 2007 (from an average of 16 months in January to seven months in December), demonstrating increased capacity within the justice sector to process complex criminal matters • implementing the new Australian policy on tackling corruption through a range of start-up activities including support for the establishment of a new National Public Procurement Office in Indonesia and anti-corruption and anti-fraud measures for the Philippines Government’s Social Protection Conditional Cash Transfer Program • providing $41 million over two years (2007–2009) to help build demand for better governance and promote the accountability of government and other institutions. Key achievements included improving access to information through the Timor-Leste Media and Communications Program which provides professional development to journalists and is supporting the introduction of a new media law to parliament • building links in the Pacific between a number of Australian Government agencies and their Pacific island counterparts to share information and expertise that will address regional governance issues and foster long-term officer-to-officer links. This included support through the Bureau of Meteorology to the governments of Tonga, Solomon Islands, Fiji, Vanuatu, Samoa and the Cook Islands to assess their capacity to receive, communicate and respond to tsunami warnings. Support was also provided for the Pacific Association of Supreme Audit Institutions to conduct a major review of auditing competencies and capabilities in the Pacific

38 PERFORMANCE EFFECTIVENESS AGAINST OUTCOMES

• initiating the Pacific Leadership Program to work with current and emerging leaders to promote good governance. This includes establishing a new partnership with United Nations Development Fund for Women to increase women’s participation as active citizens and elected representatives in the region, and partnerships with a range of regional organisations on leadership, culture and governance including the

Pacific Islands Private Sector Organisation and the Pacific Islands Association of SECTION Non-Government Organisations. Leadership development opportunities were provided for 58 current and emerging public sector leaders and support was provided for professional networks in the region through the Australian Public Service Commission and the Australia New Zealand School of Government. The Australian Leadership

Awards supported emerging leaders from the Pacific to gain academic qualifications 2 and access regional networks and other opportunities.

39 AUSAID ANNUAL REPORT 2007—2008

MDG 8: develop a global partnership for development

A central target of MDG 8 is to further develop an open trading and financial system. For over 25 years, Australia has provided preferential market access to the world’s poorest countries in recognition of the challenges they face in integrating 2

with the world economy. Since 2003, quota and duty-free access have been provided to all least developed countries, and Australia is committed to opening markets to the poorest countries to help them trade their way out of poverty. Australia is also committed to a positive outcome in the World Trade Organization Doha Development Round that significantly improves agricultural market access and

SECTION dramatically reduces subsidies to give developing countries the greatest chance of benefiting from the global trading system. Australia will provide over $300 million this year in Aid for Trade which funds projects like trade-related infrastructure, trade facilitation and trade policy development.

MDG 8 also targets the special needs of landlocked and small island developing states. Small island states, like the Pacific island countries, face acute development challenges and few are on track to meet any of their MDGs. None are on track to meet all of them. Australia increased its efforts to assist these countries through deep and enduring partnerships. The Pacific Partnerships for Development for example, will help small and remote Pacific island countries to make more rapid progress toward sustainable and inclusive economic growth.

Another target is to make available the benefits of new technologies—especially information and communications technologies. Australia helped to bring new technologies to partner countries by, for example, assisting Vanuatu to liberalise its telecommunications market. Support was provided for the Pacific Regional Digital Strategy as well as funding for innovative technologies in collaboration with regional partners including the Secretariat of the Pacific Community. Our support for the Renewable Energy and Energy Efficiency Partnership is bringing innovative energy technologies to the Pacific to help the region address its long-term energy needs.

MDG 8 includes enhanced debt relief for heavily indebted poor countries. Australia continued its commitment to providing targeted debt relief to poor countries, contributing to debt relief through international and bilateral debt relief initiatives. Australia contributed to the Heavily Indebted Poor Countries Initiative, the Multilateral Debt Relief Initiative, arrears clearance at the World Bank and International Monetary Fund, and bilateral debt relief through the Paris Club. Australia has also supported development of the Debt Sustainability Framework, which seeks to detect emerging debt-related vulnerabilities.

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ADMINISTERED PROGRAMS

COUNTRY AND REGIONAL PROGRAMS

Summary of performance SECTION

Indicator Result

75 per cent of activities receive a quality rating The aggregated quality ratings for country and

of satisfactory or higher; significant activity regional programs in 2007–08 met the 75 per outputs within guiding themes. cent quality performance target. Significant 2 achievements by individual programs are reported below.

Papua New Guinea

Overview

This was the second year of the joint Papua New Guinea-Australia Development Cooperation Strategy 2006–2010.

In 2007–08, AusAID country program aid to Papua New Guinea (PNG) totalled $346.8 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $371.0 million.

In 2007, Australia was the largest donor in PNG, providing approximately 70 per cent of all development assistance, 42 per cent of PNG’s annual development budget and 12 per cent of overall public resources.

In March 2008, Prime Minister Kevin Rudd visited PNG and issued the Port Moresby Declaration as the government’s framework for revitalised relationships with Pacific island nations. The Declaration’s key element was the offer by Australia of Pacific Partnerships for Development to improve long-term development outcomes in the region. At the joint PNG-Australia Ministerial Forum in April 2008, Ministers confirmed that PNG would be one of the first countries with which Australia will negotiate a partnership for development. The PNG partnership represents a significant evolution in Australia’s aid to PNG, emphasising the shared efforts of both countries to make more rapid progress towards the Millennium Development Goals.

Negotiation of the PNG-Australia Partnership for Development began in April 2008 with the aim of signing a framework document at the Pacific Islands Forum meeting in Niue in August 2008.

PNG experienced continued strong macroeconomic growth in 2007, achieving a further budget surplus largely as a result of the global resources boom. PNG’s economic growth in 2007 is estimated at 6.2 per cent and forecast to be 5.8 per cent in 2008. The PNG Government has allocated windfall resource revenues largely to the priorities of its medium-term development strategy, but a key challenge is to convert these extra revenues into better development outcomes for the PNG people.

41 AUSAID ANNUAL REPORT 2007—2008

Despite the strong economic performance and political stability, PNG continues to face significant development challenges and will not meet any of its Millennium Development Goal targets by 2015. The rate of poverty has increased with the proportion of people living on less than US$1 a day rising from 25 per cent in 1996 to almost 40 per cent in 20047. Despite a significant increase in school enrolments over the last 10 years, an estimated 680 000 children aged six to 14 remain out of school8. The mortality rate of 2 children under five (73 per 1000 live births) and the infant mortality rate (54 per 1000 live births) remain unacceptably high9, and PNG has the highest rate of reported HIV cases in the Pacific region at 1.61 per cent of the population. This rate is projected to increase substantially without effective intervention. The capacity of the PNG public sector to implement government policy and deliver services remains significantly constrained by SECTION human resource capacity gaps in management, coordination and general workplace skills. Improving service delivery remains a central challenge for PNG.

The Australian aid program addresses the fundamental development challenges in PNG by: • improving governance and nation building • generating broad-based growth • improving service delivery • tackling the HIV epidemic.

The aid program to PNG made encouraging progress towards many of its objectives during the year in each of these areas. Strongest progress was achieved in the transport, and law and justice sectors, with both making measurable gains in building capacity, governance and service delivery. A joint review of the Strongim Gavman Program (formerly the Enhanced Cooperation Program) found that the deployment of senior Australian officials to PNG agencies helped improve economic and public sector governance in the country. The health sector continued to struggle against the weight of service delivery demand. Australia will work with PNG to improve the performance of this sector in 2008–09.

Coordinating the efforts and activities of donors in PNG is an important part of improving service delivery and aid effectiveness. In 2008, the PNG Government and donors signed the PNG Commitment on Aid Effectiveness, which localises the Paris Declaration on Aid Effectiveness. The PNG commitment sets monitorable targets and actions to improve aid effectiveness between 2007 and 2012 and beyond.

7 Millennium Development Goals Indicators Database http://mdgs.un.org/unsd/mdg/Default.aspx accessed 8/2/08. 8 Estimation based on preliminary school census data for 2007. 9 United Nations, 2006.

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FIGURE 7: ESTIMATED TOTAL AUSTRALIAN ODA TO PNG BY SECTOR 2007–08

Rural development (2%)

Education (13%)

Governance (30%) SECTION

Multi-sector (8%)

Humanitarian, emergency and refugee (1%)

Infrastructure (25%)

Health (21%)

Improved governance and nation building

Improving governance is vital to PNG’s development prospects. Good governance requires sound democratic processes, functional state institutions and a participative and vibrant civil society.

AusAID’s support for core governance programs in PNG has strengthened some of the central platforms of state functioning. Support through Australia’s governance programs has assisted with better budget processes, improved public financial management and increased transparency of intergovernmental financing systems. Under the Strongim Gavman Program, Australian officials worked with local staff in PNG’s departments of Finance and Treasury to strengthen accounting and internal audit practices, and improve macroeconomic policy development.

The aid program made a strong contribution to promoting democratic processes and engaging communities across the country through its support for the national elections. Given the considerable logistical challenges in PNG, the conduct of national elections in 2007 was a major achievement. This success was largely due to the enhanced capacity of the PNG electoral commission to mobilise resources, work across government, and improve electoral administration. Voter education and awareness was also a key contributor to the success. AusAID provided $3.8 million to support electoral training for 4000 civil society representatives who delivered face-to-face information sessions to over 750 000 voters throughout the election period.

AusAID’s Democratic Governance Program works with state and non-state partners including PNG government agencies, Australian and PNG electoral commissions, the media, non-government organisations and churches. The Church Partnerships Program continued its success in 2007–08. AusAID allocated $6.3 million to seven Australian churches and their PNG partners to enable the delivery of basic services

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Australia-PNG Forest Carbon Partnership: commitment to take action on climate change

In April 2008, Prime Ministers Kevin Rudd and Michael Somare signed the Australia- PNG Forest Carbon Partnership. 2

PNG has 29 million hectares of forest, making it one of the world’s four remaining significant tropical rainforest wilderness areas. The logging industry contributes to economic development in these areas.

The Forest Carbon Partnership aims to reduce greenhouse gas emissions from SECTION deforestation and forest degradation and at the same time improve livelihoods for forest dependent communities and promote biodiversity protection.

Australia has committed technical support to build a satellite-based forest monitoring system and means for measuring carbon in forests. Australia will work with PNG to explore opportunities for practical projects to demonstrate how international carbon trading arrangements might work in PNG.

Prime Ministers Kevin Rudd and Michael Somare signing the Australia-PNG Forest Carbon Partnership. Australia and PNG will support efforts under the United Nations Framework Convention on Climate Change and the Kyoto Protocol to ensure that a future international agreement on climate change fully incorporates efforts to reduce emissions from deforestation and forest degradation Photo: Roger Wheatley

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and to strengthen their institutional capacity and leadership for development. Through the churches, Australia continued to support service delivery to local communities for education, health, HIV, literacy, income generation, and life skills for women. The PNG- Australia Sport for Development Initiative was also mobilised to strengthen community engagement on addressing development challenges through sport-based activities. SECTION In April 2008, the Australian Federal Police and the Royal PNG Constabulary agreed on a renewed policing partnership. Australian policing assistance will help to build the capacity of the constabulary to respond to law and justice challenges at the provincial and district levels.

AusAID continues to strengthen the PNG program by supporting provincial and district level 2 governments which are responsible for delivering the majority of services to communities. AusAID’s sub-national strategy is supporting improved planning and administration, allocation and expenditure of resources, as well as strengthened accountability for service delivery at the provincial level. Encouraging progress has been made in the initial group of provinces participating in this program. In particular, greater collaboration between the planning and finance divisions in East New Britain resulted in resources being shifted to the district and local governments, which created an environment for better service delivery.

Sustainable broad-based growth and increased productivity

The Development Cooperation Strategy and PNG’s Medium Term Development Strategy identify broad-based growth as a key development priority. AusAID provides targeted assistance for this through support for improved macroeconomic management, maintenance of key economic transport infrastructure, environment and climate change policies, and agricultural research and extension.

AusAID has supported improvements in transport infrastructure by working with the government to increase allocations for road maintenance. In 2007, 33 per cent of PNG’s 16 national priority roads were classified as ‘good’, up from 27 per cent in 2005. AusAID funded approximately 2000 kilometres of road maintenance in nine provinces, which included regravelling and resealing 404 kilometres of roads. AusAID also funded the maintenance of 340 kilometres of the Highlands Highway—a key economic lifeline for PNG. This delivered significant improvements in mobility and access for PNG people and reduced the travel time between Lae and Goroka from five to four hours.

Funding was provided to the PNG National Agricultural Research Institute to deliver targeted agricultural research and improve its services to farmers. This support enabled the institute to better achieve its strategic objectives, which include enhancing food security, improving nutrition and health, enhancing agricultural incomes and employment, and improving environmental sustainability.

AusAID, with the Australian Defence Force, was at the forefront of support for the PNG Government’s emergency response to the devastating floods that struck Oro Province in November 2007 as a result of Cyclone Guba. A total of $2 million was provided for emergency relief supplies, technical support for logistics and coordination, and seeds and tools for crop rehabilitation.

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Disaster relief: responding to Oro

Days of unrelenting rain following Cyclone Guba brought tragedy to the people of the Oro Province in November 2007. Around 150 people lost their lives in the Oro floods and many more livelihoods were swept away with the torrential rain. Much of 2

the province was effectively turned into isolated islands when about 70 bridges and causeways were destroyed.

The Australian Government joined with the PNG Government and other donors in coordinating distribution of emergency supplies. AusAID staff also played a pivotal

SECTION role on the ground undertaking crucial site visits to local communities to ensure the right aid was going to the right areas.

The reconstruction is focusing on infrastructure and crops. AusAID is supporting the construction of two schools and libraries in the province and will provide assistance to rebuild four bridges along the Kokoda National Highway.

Lives were lost and major bridges, water supplies, crops and villages in Oro Province were destroyed by flooding associated with Cyclone Guba. The Australian Government responded to Papua New Guinea’s call for assistance with funding for relief supplies and Defence aircraft to ferry supplies to the worst hit areas Photo: Corporal Chris Moore, Australian Defence Force

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Improved service delivery and stability

Efficient and effective service delivery to the bulk of the population remains a central development challenge for PNG. Inadequate funding, poor capacity to spend allocations and implement programs, and confusion over functional responsibilities at different levels

of government remain the key constraints to progress. Australia is assisting by increasing SECTION support for service delivery systems at provincial and district levels while retaining long-standing support for national programs. Australia is also committed to supporting partnerships for service delivery between state and non-state service providers.

In the education sector, gross primary enrolment rates are rising slowly but not sufficiently to achieve universal basic education. School completion rates for male and female 2 students beyond Year 10 are poor and the participation of girls in education has remained static or decreased in recent years.

In 2007–08, Australia supported the national school census to provide for the first time accurate district, provincial and national data which will inform the PNG Government’s strategy to achieve universal basic education. Australia provided new classrooms and other infrastructure to 22 schools in PNG, in addition to funding infrastructure maintenance grants to a further 1719 schools. AusAID also provided support for the reform of elementary teacher training including the development of curriculum, support to training instructors and expansion of teacher training colleges. In addition, Australia launched the Australia-Pacific Technical College in PNG in September 2007, which has enabled students and workers to upgrade their skills to internationally recognisable qualifications. The college is working closely with local industry to ensure training meets their immediate employment needs.

AusAID’s support for improved education has highlighted barriers to girls’ participation in education. The agency has developed a network of district women facilitators across the country as role models for their communities in advocating gender equity in education and improving women’s representation on school boards of management and sub committees.

The health services continue to be insufficient in many rural and remote areas where access to health services is inadequate or non-existent. In 2007–08, AusAID worked closely with the PNG Government and other donors to coordinate efforts and funding to improve the health system. The availability of pooled financial and technical resources to certain program areas such as immunisation is helping to maintain these services to communities while broader systemic weaknesses are addressed.

Procurement and distribution of medical supplies requires attention. In addition to funding emergency procurement of essential medicines in 2007, AusAID is assisting PNG to strengthen procurement and tendering processes, train pharmacy technicians and implement a national stock management system.

AusAID funded major initiatives in the law and justice sector in 2007–08 including improved services for victims of gender-based violence, improved access to legal aid and improved efficiency in processing cases through the courts. Australia’s assistance enabled the completion of the national courthouse in Bougainville and increased court sittings. New court facilities were built in Sandaun and Manus provinces, and a new court house was completed in West New Britain.

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Sport for development: champions for change

Local team sports are being used in projects around PNG to foster community connections and partnerships and promote personal development.

2 Over the past two years, AusAID has been working in partnership with the PNG

Sports Foundation to develop the Sport for Development Initiative (Strongim Komuniti Klabs).

Through this initiative, each community chooses activities for different age groups and interests which are then run by local volunteers who are supported with advice, SECTION training and basic equipment. Classes in music and cultural activities, gardening and food preparation, and HIV/AIDS awareness programs are added to core sports- based activities.

Australian Olympian, Cathy Freeman, visited PNG in May 2008 to highlight sport as an effective vehicle for development. She spoke of using sport to stamp out discrimination, promote inclusiveness, and to motivate people to overcome challenges and barriers.

Olympian Cathy Freeman at a games day at the Australian High Commission in Port Moresby. The games involved children with disability, paralympians, able-bodied people, and people living with HIV and AIDS, promoting the idea of breaking down barriers and discrimination in their communities Photo: Jason Pini

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A strengthened, coordinated and effective response to the HIV/AIDS epidemic

PNG is making little headway towards the Millennium Development Goal of halting and reversing the spread of HIV and AIDS by 2015. PNG has a generalised HIV epidemic with a prevalence rate of 1.61 per cent in 2007, up from 1.28 per cent at the end of 2006.

The epidemic is spreading faster in rural rather than urban areas, presenting a significant SECTION challenge for the country’s service delivery systems and resources. The impact of the epidemic on women is becoming more apparent and more focused action on the social, cultural and economic issues that render women more vulnerable to HIV is required.

Although most funding for HIV/AIDS in 2007–08 was provided from donors, there has been a welcome incremental increase in PNG Government financing. Strong PNG 2 leadership will be essential in responding effectively to the challenge of HIV/AIDS. Progress in national planning and coordination is now evident, and there is a growing civil society response.

AusAID’s HIV program, Sanap Wantaim (Stand Together), is providing $100 million from 2007–2012 to help implement PNG’s national strategic plan on HIV/AIDS. Activities funded include community education, voluntary counselling and testing, and working with high-risk groups. AusAID contributed $13 million in 2007–08 through Sanap Wantaim to 14 national and international non-government organisations that work with communities in all provinces. In 2007–08, Australia funded the PNG National Department of Health to procure 21 million condoms for distribution through the National AIDS Council Secretariat to provincial AIDS committees and non-government organisations.

AusAID is also supporting the PNG health sector’s response to HIV and AIDS, working with churches and non-government organisations to provide infrastructure and training to treat sexually transmittable infections. Activities include upgrading sexual health clinic facilities, procuring condoms and medical supplies, and delivering HIV testing, care and treatment services. HIV activities are also integrated across the aid program, including in the law and justice and education sectors. This assistance includes HIV training for police, teachers and non-government organisations, and producing training manuals for use by non-government organisation workers and those providing counselling to victims of gender- based violence.

Sanap Wantaim is making some headway in building sustainable PNG institutions to respond to the HIV epidemic, especially non-government organisations. However, the national response requires increased resources and capacity before it will start to make progress in halting the epidemic.

AusAID works in partnership with UNAIDS, the World Health Organization, the Asian Development Bank, the Clinton Foundation and the Global Fund to Fight AIDS, Tuberculosis and Malaria. Through the Clinton Foundation HIV/AIDS Initiative, AusAID is funding treatment services to achieve universal access to anti-retroviral treatment by 2010. AusAID also supports the PNG Business Coalition Against HIV/AIDS, which has implemented HIV policies in 40 workplaces, is working with another 70 companies, and has established a free call HIV information line.

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Australia-Pacific Technical College: training for a more productive workforce

Courses conducted through the Australia-Pacific Technical College started in PNG in September 2007. The college is working alongside industry partners in Port 2 Moresby and Tabubil to build the skills of apprentice mechanics to an internationally recognised standard. These skills were identified as being in demand locally, but training was falling short of industry requirements.

Cooperation between the college and local industry is expected to lead to greater

SECTION workplace productivity and efficiency.

For courses not on offer in PNG, the scholarship scheme is enabling students like Martha Fengenu, a 25 year old apprentice carpenter from a small village outside of Lae, to travel and study at other college sites across the Pacific. Ms Fengenu upgraded her carpentry qualifications in Fiji and is enthusiastic about carrying on the work of her late father, who built churches in PNG.

Apprentices Michelle Area and Elva Churem undertaking heavy vehicle training at Hasting Deering in Port Moresby. The Australia-Pacific Technical College is using such workshops to complement, not compete with, existing workplace training, and to encourage women to enter traditionally male-dominated industries Photo: Rocky Roe

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The Pacific

The Prime Minister Kevin Rudd announced Australia’s commitment to a new era of cooperation with Pacific island countries through the Port Moresby Declaration of 6 March 2008. The declaration respects the independence of Pacific Island countries and recognises the diversity and complexity of development challenges across the region. It SECTION highlights the common challenges of climate change and natural resource management in the Pacific. To address these challenges, the Prime Minister announced that Australia will enter into Partnerships for Development with most Pacific neighbours interested in pursuing greater levels of broad-based economic growth and progress towards the Millennium

Development Goals. 2

With many countries in the region off-track in achieving their Millennium Development Goal targets, Australia’s development assistance is focused on priority needs: better health and education, basic infrastructure to facilitate growth and private sector development, improved governance, and management of environmental challenges.

Australian aid supports cooperative work through bilateral as well as regional and multilateral approaches. Bilateral priorities are met by supporting national development strategies in a coordinated approach with national governments and other donors. The Pacific Plan, endorsed by Pacific leaders in 2004, forms the basis for regional integration and cooperation. Australia provides financial support to the Pacific Islands Forum Secretariat to implement key aspects of the plan. The agency also continues to work in partnership with other key Pacific regional organisations and donors, including the World Bank and the Asian Development Bank, to address priority issues.

In 2007–08, AusAID’s country and regional program aid to the Pacific totalled $327.7 million. Other Australian assistance through AusAID’s global programs and through other government departments brought total ODA to an estimated $505.1 million.

FIGURE 8: ESTIMATED TOTAL AUSTRALIAN ODA TO THE PACIFIC BY COUNTRY 2007–08

Vanuatu (8%)

Fiji (5%) Regional and other (25%)

Samoa (4%)

Nauru (5%) Solomon Islands (46%) Kiribati (3%) Tonga (4%

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Pacific Partnerships for Development

Prime Minister Kevin Rudd’s Port Moresby Declaration of 6 March 2008 signalled a new era of cooperation between Australia and our Pacific island neighbours. A central element of the Australian Government’s elevated engagement is the 2

intention to pursue Pacific Partnerships for Development with our Pacific island partners. The partnerships provide a new framework for Australia and Pacific island nations to jointly commit to achieving shared goals and make more rapid progress towards the Millennium Development Goals.

SECTION The fundamental principles underlying the Pacific Partnerships for Development are mutual respect and mutual responsibility. • Mutual respect: Australia respects the development policies and priorities of Pacific island countries and acknowledges the importance of their leadership and ownership of development strategies. The partnerships also provide for acknowledgement by Pacific island countries of the Australian Government’s responsibility to its own citizens to ensure that Australian aid is used appropriately and effectively to promote economic and social development. • Mutual responsibility: the partnerships are based on mutual, long-term and measurable commitments. They provide a framework for Australia and Pacific island partners to achieve shared goals and make more rapid progress towards the Millennium Development Goals. Australia is willing to provide increased development assistance over time and work more substantively through partners’ finance, procurement and decision-making systems in return for commitments by Pacific island countries to improve governance, increase investment in economic infrastructure and achieve better outcomes in health and education. The partnerships also commit Australia and Pacific island countries to strive for better development results and good practice in aid effectiveness through a sharper focus on shared accountability, based on regular joint reviews of progress and evidence-based decision-making.

Pacific Partnerships for Development are a vehicle for engagement on a potentially broad range of governance, economic and social development issues. However, at this early stage, Australia is focusing primarily on development issues and on achieving the Millennium Development Goals. The Port Moresby Declaration suggests a wide range of possible inclusions within partnerships, including measures aimed at: • improving economic infrastructure and enhancing local employment possibilities through infrastructure and broad-based economic growth • enhancing private sector development, including better access to microfinance • achieving quality universal basic education • improving health outcomes through better access to basic health services • enhancing governance, including the role of civil society, and the role of non- government organisations in basic service delivery.

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While the partnerships are bilateral arrangements, Australia will work closely with New Zealand, the multilateral development banks and other donors on common approaches to development assistance. We will continue to seek greater coherence of overall donor commitments to Pacific nations, along with practical implementation of the Paris Declaration principles. SECTION

Negotiations of Partnerships for Development began with Samoa and PNG in April 2008 with the aim of signing framework documents at the Pacific Islands Forum meeting in Niue in August 2008.

Australia’s Prime Minister Kevin Rudd meets with Papua New Guinea’s Governor-General Sir Paulias Matane at Government house during his visit to Papua New Guinea in March 2008. To the left are Australia’s Parliamentary Secretary for International Development Assistance, Bob McMullan and Parliamentary Secretary for Pacific Island Affairs, Duncan Kerr Photo: Rocky Roe

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Economic growth

Although the experience is diverse, recent growth in the Pacific is accelerating. After negligible growth in the early years of this decade, growth in regional gross domestic product averaged 2.8 per cent between 2005 and 2007 and is forecast to reach 4.5 per cent for 2008. Six Pacific island countries have grown at an average of 3 per cent 2

or more for the last three years, and the Melanesian countries of Papua New Guinea, Vanuatu and Solomon Islands (which make up more than 70 per cent of the Pacific’s population) are now growing at around 6 per cent, a rate which, if sustained, can help to reduce poverty and improve human development indicators.

While growth alone will not solve all of the region’s challenges, without faster growth SECTION the Pacific will be unable to halt rising poverty and achieve the MDGs. Without faster economic growth, there will be neither the employment available to meet community aspirations (especially of youth) nor the resources to enable governments to respond to emerging threats.

Microfinance

A large proportion of people in developing countries lack access to formal institutionalised financial services. This is either because they lack the collateral to justify the provision of credit or because financial service providers have deemed them too costly to serve. In the absence of safe and reliable credit, poor families and individuals are commonly forced to rely on informal lending schemes to finance business ventures or pay education and health expenses. These informal lending schemes are high risk: attracting high rates of interest and compounding debt.

Microfinance offers poor people access to basic financial services such as loans, savings, money transfer services and microinsurance. Over the past decade the Australian Government has encouraged its spread through support for a wide range of activities throughout the Asia Pacific region.

Microfinance has been an extraordinary global success, with 13 million people, most of them women, accessing finance by 2007. As a consequence, their incomes, their health and education status have all increased. Most of these people live in Asia. The Australian Government is currently examining options for increasing its support for microfinance across the globe, but particularly in the Pacific region.

Pacific Economic Survey 2008 During the year, AusAID launched the first in a new series of analytic reports, the Pacific Economic Survey 2008. The report draws on regional expertise and is guided by consultations with regional experts. These annual surveys will provide an overview of current economic developments in the region, including East Timor. They will update the performance of regional economies, including performance against the Millennium Development Goals, and each survey will examine an issue of particular importance to the region.

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Pacific Economic Survey 2008

The Pacific island countries and Timor-Leste face many daunting challenges but there are also positives to report. According to Pacific Economic Survey 2008,

the regional economy is set to grow by 4.5 per cent in 2008 and connectivity in SECTION the region—by phone, plane and ship—is improving. The survey, which has the theme Connecting the Region, is the first in a series of annual reports that look at economic performance in the Pacific islands and East Timor, and examine ways regional governments are creating growth and reducing poverty.

Greater connectivity is helping the Pacific improve its performance. Competition 2 among airlines is improving services, making tourism to several countries more attractive. There are more flights and fares are cheaper, and the benefits of liberalisation are being clearly seen in these economies. Creative policies relating to shipping show that it is possible to bring services to people living in even the most remote islands. Competition in the telecommunications sector has in some countries led to a dramatic increase in mobile telephone use, and to significantly lower prices.

There remain, of course, major obstacles to growth in the Pacific. Inadequate airport and port facilities, instability, poor governance, high unemployment, climate change and even natural disasters will blunt prospects for economic progress in many places. But those countries that can sustain good macroeconomic management and sound fiscal policies, and which introduce positive microeconomic reforms, are well positioned to achieve further poverty reduction.

Governor of the Reserve Bank of Vanuatu, Odo Tevi (left), with the Parliamentary Secretary for International Development Assistance, Bob McMullan (centre), and the Parliamentary Secretary for Pacific Island Affairs, Duncan Kerr (right), at the launch of the Pacific Economic Survey 2008 in Port Vila, Vanuatu Photo: Dan McGarry, Pacific Institute of Public Policy

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Land Land is the most significant social and economic asset for Pacific island communities and countries. It is crucial for food production, shelter, community development and economic wealth. However, access to land for public and private investment is limited in most Pacific countries due to the complex and culturally sensitive nature of customary tenure systems

2 that still dominate. During 2007–08, AusAID completed the initial phase of the Pacific Land Program, which included preparing 16 case studies on innovative practices in land tenure and administration in the region and a synthesis report.

SECTION Improving access to land in the Pacific

The Pacific Land Program was established by AusAID in 2006 to support Pacific countries wanting to make more land available for economic and social development.

The first phase of the program identified a number of innovative practices and key principles for working effectively with customary forms of tenure in the Pacific. This information is contained in the Making land work publication which was officially launched by Australia’s Parliamentary Secretary for International Development Assistance, Bob McMullan, on 12 June 2008 at a land conference in Vanuatu.

The second phase of the program, to begin in 2008–09, involves an investment of $54 million over four years to assist countries who wish to strengthen their land tenure systems. Work has already commenced with four countries: Papua New Guinea, Solomon Islands, Vanuatu and East Timor. A regional program will strengthen the education and training of land professionals and improve the management of urban settlements and the rapid rate of urbanisation.

Anna Naupa of AusAID making a presentation on land and gender issues at the Making land work conference. Seated is Stephanie Copus Campbell, former Assistant Director General of Samoa who chaired the session Photo: Peter O’Connor

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Fisheries Fisheries are an important resource for Pacific island countries. Pacific fisheries provide a major source of revenue for governments, as well as income and employment for the regional workforce. In many countries, fish also contribute the majority of animal protein in the diet of the population. SECTION AusAID released its fisheries framework Valuing Pacific fish: a framework for fisheries- related development assistance in the Pacific in November 2007. This framework will guide AusAID’s scaled-up engagement on this issue of strategic importance.

During 2007–08, Australia provided assistance to Pacific island countries to manage 2 their fisheries resources through support for regional organisations, the Forum Fisheries Agency, and the Secretariat of the Pacific Community.

The Forum Fisheries Agency continued to provide high quality technical assistance to member countries to improve fisheries management and enhance fisheries development in the Pacific region, particularly relating to tuna. The Secretariat of the Pacific Community provided member countries with important scientific information on the status and value of Pacific fisheries for national and regional fisheries management and negotiations.

Key achievements in 2007–08 included: • enabling the Secretariat of the Pacific Community to undertake important research on aquaculture and live reef fish, ecosystem-based management and the potential impacts of climate change on fisheries • funding the Forum Fisheries Agency to develop a regional monitoring, control and surveillance strategy, with priority activities including: — deterring illegal fishing — an aerial surveillance trial — a regional oceanic fisheries risk assessment — a regional compliance audit — a regional monitoring, control and surveillance coordination assessment — a regional capability assessment • developing an institutional strengthening project to help the Nauru Fisheries and Resource Management Authority implement institutional and management changes and improve organisational management systems • developing a partnership with the Asian Development Bank to analyse the contribution of fisheries to the economies of Pacific island countries. This will provide the region with important information on the contribution of fisheries to employment, access and licence fees, and gross domestic product co-funding.

Australia remains committed to advancing the practical actions on Pacific fisheries called for by leaders at the 2007 Pacific Islands Forum, in particular the Vava’u Declaration on Pacific Fisheries Resources. Priorities will continue to be food security through sustainable fisheries management, and safeguarding the fisheries resource for the future economic benefit of Pacific island people.

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Governance

Public sector strengthening Australia is working closely with partners such as the Pacific Islands Forum Secretariat to promote regional solutions to shared governance concerns. This includes Australian support for the three Pacific Plan initiatives to strengthen audit, ombudsman and 2 statistical services in the region, as well as a wide range of public sector strengthening projects and leadership development opportunities for current and emerging leaders.

The Pacific Governance Support Program links Australian Government agencies with their Pacific island counterparts to share information and expertise that addresses regional

SECTION governance issues and fosters long-term officer-to-officer links. In 2007–08, total expenditure for this program was approximately $5.5 million.

Key achievements in 2007–08 included: • working with the Department of Health and Ageing to help senior officials from the Tongan Ministry of Health implement a workforce planning tool to assess and review nurse staffing levels • working with the Bureau of Meteorology to help the governments of Tonga, Solomon Islands, Fiji, Vanuatu, Samoa and the Cook Islands to assess their capacity to receive, communicate and respond to tsunami warnings • strengthening partnerships between Australian Government departments and their counterparts from across the Pacific to improve the regional networking of legal officers, customs departments and ombudsmen. For example, through the Commonwealth Ombudsman, AusAID has provided support for strengthened case management in the investigation of administrative disputes in the Cook Islands • working with the Australian Bureau of Statistics to provide project management training for the national statistics offices in the Federated States of Micronesia, Samoa, Tuvalu, Solomon Islands and the Republic of the Marshall Islands to allow them to undertake major surveys, such as a population census and household income and expenditure surveys • funding the Pacific Association of Supreme Audit Institutions to conduct a major review of auditing competencies and capabilities of audit institutions in the Pacific.

AusAID continued its commitment to high quality research and analysis on leadership and building demand for better governance in the Pacific to inform policy and program development. For example, the Crawford School of Economics and Government at the Australian National University was funded to publish the Pacific Economic Bulletin and to deliver the Pacific Update seminar series in Australia and the region. AusAID also funded the State, Society and Governance in Melanesia Program at the Australian National University to deliver a region-wide conference series and to draft briefing papers on current issues in the region such as the impacts of globalisation and nation building.

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The Federal Court of Australia’s cooperation with the Supreme Court of Tonga

Since November 2004, the Pacific Governance Support Program has funded the

Federal Court of Australia to work closely with the Supreme Court of Tonga to help SECTION identify priority areas for enhancing its court administration. The first significant reform was the introduction of a computerised case management system. Previously, all court records were compiled manually. The computerised system allowed dormant cases to be removed from the list and the progress of active cases

to be closely and easily monitored. 2

The second reform was the introduction of court-annexed mediation as an alternative to going to court. Mediation can be a less expensive, often quicker, more accessible and more socially appropriate means of resolving disputes which resonates closely with the way disputes were resolved in Tonga before the ascendancy of the common law. The Federal Court helped develop a regulatory framework for mediation, accreditation training for mediators, and to raise awareness amongst the legal profession and the public.

These reforms have contributed to a significant reduction in the time taken to settle cases. In October 2007, the World Bank highlighted in its Doing Business report that Tonga’s Supreme Court had cut the average time to enforce contracts from 510 days to 350, earning it the title of the 2007 top reformer in the category of contract enforcement.

Judges and court staff from the Supreme Court of Tonga celebrate being named the world 2007 top reformer in enforcing contracts Photo: Courtesy Talaki Newspaper and Taimi ‘o Tonga Newspaper

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Leadership Support for good leadership and its development across sectors is a priority for all program areas.

Key achievements in 2007–08 included:

2 • providing leadership development opportunities for 58 current and emerging public sector leaders and supporting professional networks in the region through the Australian Public Service Commission and the Australia New Zealand School of Government • supporting emerging leaders from the Pacific to attain academic qualifications and

SECTION gain access to regional networks and other opportunities through the Australian Leadership Awards.

In addition, the Pacific Leadership Program helps develop current and emerging leaders, primarily non-state players, to improve governance across the region.

Law and justice AusAID has also worked closely with the Australian Federal Police to develop future policing projects (regionally and bilaterally). The Australian approach is guided by the Future Directions in Pacific Policing Strategy, which was adopted by the Pacific islands chiefs of police in October 2007. The strategy recognises the need to maintain and improve policing capacity in the region and to promote regional cooperation on policing. It also recognises that ethics and integrity issues lie at the heart of community trust and confidence in the police.

Key achievements in 2007–08 included: • undertaking a new partnership with the United Nations Development Programme’s Pacific Centre to support peace-building efforts in the Pacific by improving the ability of governments and civil society organisations across the region to analyse and understand factors promoting peace, and the underlying causes and triggers of instability, conflict and human insecurity • screening high quality television and internet advertising on each of the 30 articles of the Universal Declaration of Human Rights, helping to increase understanding of the applicability of human rights to ‘ordinary’ people in their daily context. These announcements are complemented by ongoing training of parliamentarians, judges and magistrates, as well as human rights and disability advocates across the region • implementing significant improvements in decision-making processes in courts in Samoa, Cook Islands and the Federated States of Micronesia. Improvements in the registry processes in Kiribati and Niue are also evident • through the Pacific Regional Policing Initiative, improving basic policing skills and strengthening planning processes and orientation to meet the needs identified by the public. Police agencies from Samoa, the Cook Islands, Tonga and Vanuatu now have accredited fingerprint specialists, whose work is resulting in fingerprint identifications and stronger evidence-based prosecutions.

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Anti-corruption Corruption is a major impediment to growth and development. In 2007–08, Australia provided more than $5.5 million to support targeted anti-corruption initiatives in the Pacific region, including continuing support for: • organisations that raise awareness of corruption and play an important role in SECTION its exposure such as Transparency International. AusAID is funding Transparency International’s Asia Pacific Department and chapters of the organisation in key Pacific countries • national oversight institutions such as the auditor-general, the public service

commission and the ombudsman office (or the Leadership Code Commission in 2 Solomon Islands) • law and justice institutions such as the attorney-general, police and courts. For example, Australia assisted the Solomon Islands Government to analyse its legal framework for anti-corruption to identify future reform options and priorities.

These programs are in addition to Australia’s broader investments in good governance and service delivery in the Pacific. These include strengthening public financial management systems to increase transparency and reduce the opportunities for fraud, and providing leadership training for public officials, including on ethics and accountability. Australia is also providing assistance to civil society organisations to build demand for better governance.

Health and education

Pacific health Non-communicable diseases, particularly diabetes, heart disease, stroke, cancer and chronic respiratory illnesses are now the leading cause of death in the Pacific islands. At the same time infectious and vector borne diseases, including malaria and dengue, remain a serious problem. There is also a relatively high rate of sexually transmitted infections, and the prevalence of HIV/AIDS, although still relatively low, is increasing. Pacific health systems currently lack the capacity and health workers needed to respond to these major health challenges.

Australia is a major donor in the Pacific health sector, working closely with Pacific island governments and other donors, primarily through bilateral programs in alignment with national health plans, and increasingly through regional organisations such as the Secretariat of the Pacific Community and World Health Organization.

Key achievements in 2007–08 included: • providing all 22 Pacific island countries and territories with access to antiviral medication and rapid test kits for avian influenza. In addition, a regional database is being used to collect and monitor technical progress of countries’ capacity to respond to emerging diseases and work with UNICEF and other regional stakeholders is underway to develop communication protocols in the event of any incidents of avian influenza

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• funding 17 medical specialist teams to visit 10 Pacific island countries, leading to 4904 patient consultations and 479 operations between January and September 2007 • establishing a Brisbane-based Pacific Malaria Initiative Support Centre to provide ongoing technical and management support for the $25 million (2007–2011) Pacific Malaria Initiative. A major malaria survey, the first of its kind in Vanuatu was completed, providing information for eliminating the disease. Malaria action plans were 2 developed in Solomon Islands and Vanuatu, and both countries are building the platform for full-scale implementation in 2009 • supporting the Fiji School of Medicine to graduate 312 specialist health workers in 2007—including 69 medical graduates—and increase its 2008 medical student intake to 78 students SECTION • expanding voluntary confidential counselling and testing with trained HIV counsellors • strengthening organisations for HIV positive people in the region. For example, the Fiji Network of Positive People, FJN +, is now able to provide community advocacy services, as well counselling, income generating and legal support to people with HIV.

Pacific education Education plays a central role in reducing poverty and achieving lasting stability in the Pacific. Countries are steadily improving and expanding their education systems. However, there is a range of ongoing challenges including quality of learning, relevance of curriculum, and access to education by disadvantaged groups.

AusAID is a leader in the education sector in the Pacific working closely with governments and other donors to improve the delivery of education services by developing sector programs, constructing schools, reforming curriculum and training teachers.

Key achievements in 2007–08 included: • training over 93 per cent of school principals and 86 per cent of school managers in Fiji, resulting in improved leadership and management, and increased community involvement in schools • creating an additional 350 places for secondary students in rural areas through a secondary schools extension project in Vanuatu, and developing the first national non-formal technical and vocational curriculum • providing places for 2600 junior secondary students in Kiribati, improving access to textbooks and reading materials (240 000 books supplied), improving access to guide books and reference materials for teachers (61 920 books supplied), developing teacher skills (5200 days in-service training provided to primary teachers), and improving education management information system and curriculum development procedures.

The Australia-Pacific Technical College The Australia-Pacific Technical College commenced operations in July 2007 and already over 2000 applications have been received for enrolment. A total of 3000 students are targeted for graduation by 2011. The college provides both women and men with access to educational opportunities. Annual gender targets will be established for each school and incorporated in college annual plans.

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Australia will provide almost $150 million in funding for the college through to 2011. It is delivering technical and vocational training in Fiji, Papua New Guinea, Samoa and Vanuatu, and will provide Australian qualifications in automotive, construction, electrical and manufacturing trades, hospitality and tourism, and community services. These courses are being provided in response to national and regional skills needs and to increase employment opportunities and economic growth in the region. SECTION

A $10 million scholarship program is ensuring that citizens from all Pacific Island Forum member countries will be able to access the college. Over 500 scholarships were offered in 2007–08.

The Australia-Pacific Technical College is working closely with local industry to ensure 2 training meets their needs and graduates are work ready. A number of major companies in the Pacific have expressed strong interest in the college training their employees. An advisory group has been established consisting of senior government and industry representatives from the Pacific. It will advise on the future strategic direction of the college and industry’s training needs.

Pacific environment and climate change

The Pacific faces many unique environmental challenges that require innovative and sustained responses. Pacific island countries are particularly vulnerable to the effects of climate change. In 2007–08, Australia’s regional environmental program continued to assist Pacific island countries to monitor, predict and adapt to the impacts of climate change, including sea level rise and climate variability.

Key achievements in 2007–08 included: • supporting the collection and analysis of high quality sea level data, to help Pacific island countries plan for potential impacts of climate change • enabling 10 Pacific national meteorological services to provide more accurate weather and climate prediction services to government, industry and communities, and to help with planning and decision-making in climate-sensitive industries and services such as agriculture, fishing, tourism, public health agencies and water resource managers • organising with the United Nations Development Programme a workshop highlighting women’s knowledge and expertise in relation to disaster risk management and climate change observation and adaptation • providing community grants to provide sustainable access to clean water, assisting vulnerable communities to reduce their susceptibility to extreme weather events, rising sea levels and changes in rainfall patterns • working with New Zealand to help establish the Global Environment Facility’s Pacific Alliance for Sustainability, which will significantly increase financing for key environmental challenges in the Pacific, including climate change and loss of biodiversity • assisting Pacific island countries to collect and safely dispose of persistent organic pollutants, which pose a serious risk to human health and the environment.

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Pacific bilateral programs

Solomon Islands The goal of Australia’s development assistance is to foster a peaceful, well-governed and prosperous Solomon Islands. Australia is the largest donor in Solomon Islands and the leading contributor to the Regional Assistance Mission to Solomon Islands (RAMSI). 2 Through its bilateral program and RAMSI, Australia’s aid program is aimed at: • contributing to a safer and more secure Solomon Islands • encouraging sustainable broad-based growth and contributing to a more prosperous Solomon Islands

SECTION • promoting government to better serve the Solomon Islands people • helping build strong and peaceful communities.

In 2007–08, AusAID country program aid to Solomon Islands totalled $97.4 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $229.8 million.

Key achievements in 2007–08 included:

Law and justice • Improving access to justice for all Solomon Islanders. Technical assistance provided by Australia facilitated key law reforms such as passing the Magistrate’s Court (Amendment) Act and civil procedure rules that have reduced court costs and simplified the legal process. • Maintaining law and order throughout the challenging period of the no confidence vote and change of government through Solomon Islands police force measures, supported by RAMSI’s participating police. • Developing infrastructure to strengthen the Solomon Islands Government’s capacity to administer law and justice. This included refurbishing Kalala House in Honiara which now houses the Ministry of Law and Justice, the Law Reform Commission and Attorney-General’s chambers. • Improving prison security and prisoner safety. Prison incidents decreased from 91 in 2006–07 to 58 in 2007–08.

Economic governance • Rehabilitating and enhancing existing infrastructure, including 75 kilometres of roads and bridges in Guadalcanal and Malaita, to improve access for residents to income generating opportunities and social services such as markets and health centres. • Improving aviation competition through measures including technical support from RAMSI advisers within the Ministry of Finance and Treasury, which facilitated a new operator in the market and reduced international airfares to Solomon Islands.

Governance • Improving parliamentary oversight and scrutiny by building the capacity of National Parliament Office staff, who provide secretariat services to parliamentary committees.

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• Strengthening accountability of government institutions by helping build infrastructure and providing an in-line deputy auditor general and audit specialists, which has led to audits of all government financial accounts, including nine provincial governments, and helped the Leadership Code Commission clear a backlog of more than 100 cases in 2007. SECTION Community • Enhancing public health services by co-funding a national public health laboratory with the European Union. The facility, the only one of its kind on Solomon Islands, will test for diseases and improve the country’s capability to respond to outbreaks and

epidemics. 2 • Helping about 20 000 women to access women’s resource centres built through AusAID’s community sector program. These centres provide training in income generation, family health and leadership. • Improving sexual and reproductive health by funding a targeted community-based HIV and sexually transmissible infection prevention program that includes peer education for highly vulnerable populations. • Working with New Zealand’s international aid and development agency, NZAID, and AusAID-funded non-government organisations to help 24 000 people re-build 4000 homes damaged or destroyed in the April 2007 earthquake and tsunami.

Vanuatu Australia’s aid program works closely with Vanuatu to support the recent economic growth (estimated at 6.8 per cent in 2007). In 2007–08, AusAID country program aid to Vanuatu totalled $30.3 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $39.8 million.

Australia’s aid program works with the Government of Vanuatu to develop strong sectoral policies in areas where we are directly engaged, as well as focusing on implementation of the government’s overall development objectives. The aid program has also made substantial progress towards closer alignment with Vanuatu’s policies and processes, including increased implementation through using Government of Vanuatu systems. Support for civil society has expanded, including new partnerships with chiefs and churches and community organisations.

Key achievements in 2007–08 included: • supporting major reforms to improve the efficiency and reach of health and education services. A focus on coordination brought together Government of Vanuatu and donor resources to improve effectiveness of service delivery in rural areas • commencing land reform initiatives through a project in land reform to reduce and alleviate land disputes and manage private sector development more effectively • enhancing utilities regulation and public financial management through technical and financial support, and participating in negotiations to help in the introduction of competition into the telecommunications industry.

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Governance and growth—telecommunications reform

Through the Governance for Growth program, Vanuatu and Australia work jointly to identify and overcome governance obstacles to broad-based growth, effective service delivery and poverty reduction, especially to Vanuatu’s rural population. 2

Key features of Governance for Growth is that it is collocated in a Vanuatu Government office, works through the government systems, engages strongly with key ministers and officials, and backs reforms which have solid political and public support. SECTION The program has made good progress in key areas of reform, particularly in telecommunications where Vanuatu previously had a long-standing telecommunications monopoly. Coverage rates were as low as 20 per cent and the cost of calls were high. These limitations presented a major obstacle to growth and service delivery in Vanuatu.

In 2007, the Government of Vanuatu made the decision to introduce competition in the telecommunication sector as a vital economic development for Vanuatu. Through Governance for Growth, AusAID provided financial support and participated in commercial negotiations. A telecommunications negotiator, as well as funding for a 12-month interim regulator position to deal with disputes and issues between the providers, helped end the monopoly. A long-term regulator will be supported by the World Bank through a trust fund with AusAID.

The Government of Vanuatu also established a universal access policy fund to support further investment in telecommunications, especially for areas that are not commercially viable. AusAID has agreed to provide an additional $1.85 million to support the fund.

The telecommunications market in Vanuatu is now open to competition. A license has been issued to a new telecommunication provider which is already providing coverage to 75 per cent of Vanuatu’s population, and the prices of mobile telephones and sim cards have dropped significantly.

A young woman uses her mobile phone in Port Vila, Vanuatu. Australia has helped Vanuatu introduce competition in the telecommunications sector leading to reduced costs and expanded coverage Photo: Rob Walker

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Fiji Fiji continued to face significant challenges following the 2006 coup. Fiji’s economy contracted by 3.9 per cent in 2007, services deteriorated and many people faced increasing poverty, especially those living in rural areas. The December 2006 coup, the fourth in 20 years, resulted in discouraging reversals in governance and respect for human rights, causing further increases in hardship. Fiji may not meet several Millennium SECTION Development Goals, particularly in relation to poverty, health and water, and sanitation.

In 2007–08, AusAID country program aid to Fiji totalled $18.0 million. Other Australian assistance through AusAID’s regional and global programs and through other government

departments brought total ODA to an estimated $27.6 million. 2

The focus of the program is on building resilient communities, contributing to an enabling environment for good governance, and planning for economic recovery, reform and growth, as the political situation allows.

Key achievements in 2007–08 included: • establishing pilot projects for rural enterprise developments that contribute to a sustainable community, as well as private sector-led enterprises in the rural sector. For example support to the domestic horticulture industry is being broadened and new women growers are being supported to join the market • improving leadership and management at the school level by increased training through the Fiji education sector program. This is resulting in increased community involvement and improved relationships with school administrations • establishing a national curriculum framework for Fiji, which has been developed through significant consultation and better meets the needs of students • providing support and skills development to the textiles, clothing and footwear industry to achieve productivity targets and keep the predominantly female workforce in paid employment and in improved workplace conditions • ensuring long-term funding support to the Fiji Women’s Crisis Centre over a period of almost 20 years, which has helped build the centre into a ‘gold standard’ organisation, which provides high quality counselling and practical support to women and children who have suffered violence • supporting the Fiji Red Cross to restock its emergency supply containers located around Fiji following the January 2008 tropical Cyclone Gene. Funding was also provided to the Fiji National Disaster Management Office to rehabilitate the agriculture sector in the most severely affected areas.

Together with other major donors in the region, Australia committed assistance for Fiji’s democratic elections in early 2009 and has already supported technical needs analyses, the census to update constituency boundaries, and a salary supplementation package for the supervisor of elections.

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Samoa

On current trends, Samoa is likely to achieve all of the Millennium Development Goals, potentially making it the Pacific’s first country to achieve this milestone. Developing a robust system for collecting data will help inform future progress against the goals as well as development planning. Samoa still faces significant challenges, particularly in terms 2

of inequality and unemployment, and in relation to the quality of education and health. In April 2008, Australia and Samoa began negotiating a Pacific Partnership for Development to respond to these challenges and improve long-term development results. Due to Samoa’s trend towards achieving the Millennium Development Goals, the Partnership provides an opportunity to also support Samoa’s movement beyond these goals in

SECTION sectors such as health and education to achieve a better quality of service delivery.

In 2007–08, Australia’s country program aid to Samoa totalled $12.4 million. Australian assistance through regional and global programs and other government departments brought total ODA to an estimated $22.0 million.

The focus of Australia’s aid is on improving education and health delivery services and better governance, including enhanced support to the law and justice sector. The program provides an equitable distribution of scholarships between men and women. AusAID has continued to build upon its use of Samoan Government systems and enhance its cooperation with donors.

Key achievements in 2007–08 included: • completing construction of the Samoa police headquarters and increasing access and police visibility by introducing a mobile police unit with bicycles • providing technical assistance and financial incentives to support regulatory reforms and reduce government arrears from electricity use through a power sector expansion project. Australia is working in partnership with the Asian Development Bank, Japan and Finland in the energy sector to help Samoa meet its growing demand for electricity through increased energy production, demand management programs and public awareness campaigns • expanding training opportunities through the Samoan training centre for the Australia- Pacific Technical College at the National University of Samoa. The centre commenced in February 2008 with a total of 89 students (Samoan and international) • increasing support for the Samoan Government’s own internal systems and processes through the Public Sector Improvement Facility. The facility is supporting institutional strengthening projects, including within the audit and the statistics offices.

Tonga The Tongan economy is slowly recovering from the impact of the 2006 riots, with a significant reliance on remittances. In 2007–08, AusAID’s country program aid to Tonga totalled $13.4 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $17.8 million. Australian aid has included support for health, education, governance, waste management and law and justice.

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Key achievements in 2007–08 included: • decreasing the average time to enforce contracts from 510 to 350 days, which resulted in the Tongan judiciary receiving a World Bank award for top reformer in the category of contract enforcement • providing legal services to help establish an independent anti-corruption commission SECTION • enhancing transparency of the 2008–09 budget process and revenue reform, including improved compliance and service delivery, through the performance-linked Tonga- Australia Performance Partnership Agreement • providing technical advice and resources to help develop a new Act to simplify customs

transactions and help establish a level playing field for business 2 • providing loans and grants through the Business Recovery Facility to help 56 businesses restock and re-establish after the civil unrest of 2006 • providing organisational change expertise to help build planning, management and organisational capacity in the Ministry of Health, and improve pharmaceutical stock control and data management • helping to grow a recycling business and reduce pollution in Nuku’alofa’s waterways through a project to manage solid waste.

Nauru Nauru’s significant economic and governance reforms are resulting in an improving international reputation, successive balanced budgets, better basic services and some potential for modest economic growth from the recommencement of phosphate mining. However, the country continues to face considerable challenges and constraints to its long-term economic sustainability.

In 2007–08, AusAID country program aid to Nauru totalled $19.7 million. Other assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $27.4 million.

Development assistance supported health, education, utilities, economic and financial management and public sector capacity building, including policing assistance.

Following closure of Nauru’s offshore processing centre in March 2008, the development assistance program took over delivery of a range of community services previously provided through the centre. These included catering for Nauru’s major hospital, salary support for some key medical personnel and the provision of security services for public assets such as Nauru’s fuel storage facilities.

Key achievements in 2007–08 included: • providing technical advice and resources to help the Ministry of Finance improve economic and financial management, resulting in balanced budgets, growing international recognition of Nauru’s reform efforts, enhanced international engagement and stronger budget planning and management • helping the director of utilities restore Nauru’s power and water facilities to stable and reliable functionality by providing skilled personnel, technical advice and operational funding

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• providing planning advice and financial assistance to help the director of education deliver basic education services, infrastructure and facilities. The result is improved student attendance, higher numbers of qualified teaching staff, better curricula and a new five-year strategic plan for education services • providing planning and management expertise to help the secretary of health improve infrastructure, staffing and planning, and to achieve better access to more reliable and 2 higher quality basic community health care services.

Kiribati In 2007–08, AusAID country program aid to Kiribati totalled $5.7 million. Other assistance through AusAID’s regional and global programs and through other government SECTION departments brought total ODA to an estimated $15.5 million.

Key achievements in 2007–08 included: • gaining a 96 per cent completion rate for the first cohort of students participating in the nurse skills upgrading program in Australia, and undertaking academic preparation in Kiribati for the second student cohort • providing technical support to assist the Kiribati Government finalise a strategic education plan and implement a curriculum and assessment strategy • improving the detection and treatment of tuberculosis and providing better equipment and skills in obstetric care through partner programs with the United Nations Children’s Fund and United Nations Population Fund.

Small island states Australia provided support to a number of other Pacific island nations in 2007–08 to a total of $9.4 million. AusAID’s country programs included the Cook Islands, Tuvalu, Federated States of Micronesia, Republic of Marshall Islands, Republic of Palau, Niue and Tokelau. Assistance targeted human resource development, governance reforms, outer islands infrastructure, education, small grants schemes for community organisations and contributions to international trust funds. Australia and New Zealand also collaborated closely on aid delivery to the Cook Islands, Niue and Tokelau.

Indonesia

The Australian and Indonesian Governments are committed to working together to alleviate poverty and promote regional peace, stability and prosperity.

On 13 June 2008, Prime Minister Kevin Rudd and President Susilo Bambang Yudhoyono announced a new strengthened five-year development assistance partnership, outlined in the Australia-Indonesia Partnership Country Strategy 2008–2013. The country strategy was jointly developed in-line with Indonesia’s medium-term development plan, and focuses on creating a better life for around 100 million Indonesians who live in poverty on less than US$2 a day.

While Indonesia’s economy has returned to pre-Asian financial crisis growth rates and now has low middle-income country status, there remains great disparity across regions and some of the highest rates of HIV incidence and maternal deaths in Asia. Indonesia also

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has the highest record of human avian influenza cases in the world and its geographic instability makes it vulnerable to natural disasters. The challenges of combating poverty are exacerbated by high food and oil prices, which are forecast to contribute to a fall in economic growth from 6.3 per cent in 2007 to around 6 per cent in 2008.

In this context, Australia is increasing its efforts to assist Indonesia to make faster SECTION progress towards achieving the Millennium Development Goals, particularly to improve the health of mothers and children and increase access to clean water and sanitation. This is being done with multilateral organisations and other donors to ensure aid is targeted and effective.

In 2007–08, country program aid to Indonesia, including the Australia-Indonesia 2 Partnership for Reconstruction and Development (AIPRD), totalled $361.1 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $449.6 million.

FIGURE 9: ESTIMATED TOTAL AUSTRALIAN ODA TO INDONESIA BY SECTOR 2007–08

Rural development (7%)

Multi-sector (5%)

Infrastructure (5%)

Humanitarian, emergency and refugee (3%)

Education (46%) Health (11%)

Governance (21%) Environment (2%)

Activities in 2007–08 are reported against the four key areas of development assistance to Indonesia: • sustainable growth and economic management • investing in people • democracy, justice and governance • safety and peace.

Output 2.1 details major achievements of AIPRD, including Australia’s rehabilitation work in Aceh.

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Australia-Indonesia Partnership Country Strategy 2008–2013

The new country strategy sets the direction for the Australia-Indonesia partnership during the next five years and is another step forward in a relationship that is important to both countries, as well as to poverty reduction, peace and prosperity in 2

our region.

Australia expects to provide up to $2.5 billion in development assistance to Indonesia during this period to create a better life for around 100 million Indonesians who live in poverty on less than US$2 a day. SECTION AusAID and the Indonesian Government worked very closely to identify the long- term priorities to alleviate poverty. The strategy supports Indonesia’s medium- term development plan, which is focused on achieving the targets set under the Millennium Development Goals.

Australia will focus on helping Indonesia achieve sustainable growth through improved natural resource and economic management, including improving infrastructure such as roads and stimulating development in rural areas, where most poor Indonesians live. Assistance will also be provided to improve the quality of education and health, particularly for mothers and children, and to reduce the spread of HIV/AIDS.

Prime Minister Kevin Rudd and the President of the Republic of Indonesia, His Excellency Susilo Bambang Yudhoyono, shake hands following the signing of a memorandum of understanding on disaster relief at the State Palace, Central Jakarta Indonesia, in June 2008 Photo: David Foote AUSPIC

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Australia will also continue to support Indonesia’s efforts to strengthen governance, democracy, human rights and disaster preparedness through Indonesian institutions and civil society, and further enhance our people-to-people links.

This work will only be done through close cooperation with other donors and aid SECTION agencies, including non-government organisations, and other Australian Government departments. Australia will work more closely with multilateral organisations, such as the World Bank and the United Nations, to tackle major development issues, including improving people’s access to clean water and sanitation.

As Indonesia devolves service delivery to the provinces and districts, similar to 2 Australia’s state and local government system, AusAID will work increasingly at that level to help improve services and systems. Assistance will be targeted to the poorest provinces, including Aceh and Papua, and to priority areas such as Kalimantan where work will progress on climate change, one of the greatest global development challenges of our time.

The country strategy includes a performance assessment framework to measure the impact of the development assistance program.

Sustainable growth and economic management

Australia is helping Indonesia achieve sustainable growth through improved economic policy and management that will increase employment and reduce poverty in-line with the Millennium Development Goals. Against international ratings, Indonesia ranks low on several measures—government competitiveness, business efficiency and investment in physical infrastructure.

In 2007–08, exchanges between Australian and Indonesian Government officials and technical support assisted the Indonesian Government to improve economic, financial and public sector management policies.

A new $60 million infrastructure initiative was developed to help Indonesia attract investment and reform its infrastructure policy and regulations.

Most of Indonesia’s poorest people live in rural areas and Australia continued to fund projects to improve farmer productivity as well as access to markets. This will generate economic growth and reduce rural poverty by creating jobs and increasing household incomes.

Economic growth should be environmentally sustainable and Australia and Indonesia made a joint commitment in 2007 to protect the environment and reduce greenhouse gas emissions. Australia committed $40 million through the International Forest Carbon Initiative to Indonesia, including $30 million to the Kalimantan Forests and Climate Partnership. This project to preserve, reflood and reforest peatlands is one of the first of its scale in the world established to demonstrate that emissions can be reduced by providing incentives to avoid deforestation and forest degradation. Outcomes

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will be used to inform the development of a post-Kyoto international climate change agreement. Australia will provide $10 million to prepare Indonesia to participate in international carbon markets.

Key achievements in 2007–08 included: • working with the World Bank to deliver better water and sanitation, which increased 2

access to clean water from 25 per cent to 77 per cent and access to sanitation from 24 per cent to 42 per cent of households in 2500 rural villages • designing improvements for up to 750 kilometres of national roads and 1000 metres of bridges to support economic and social development in eastern Indonesia, with the first construction tenders to be issued from mid-2008 SECTION • assisting communities affected by the 2006 earthquake in Yogyakarta and Central Java to rebuild houses, businesses, health clinics and community halls, a response that was assessed as timely and effective • supporting rural development in eastern Indonesia by identifying promising market prospects for 11 agricultural products and establishing partnerships with leading food manufacturers to add value to produce and increase access to markets • helping the government improve tax collection to make more resources available for service delivery. This contributed to an increase in non-oil tax revenue of 5.7 per cent in 2007 • supporting high quality research on poverty, gender, social protection and welfare that influenced the development of government policy.

Investing in people

A healthy, educated population creates a larger, more productive workforce, builds a competitive economy and improves quality of life.

Indonesia is on track to achieve the Millennium Development Goals in primary education, literacy and gender equality, and is focused on improving education quality and ensuring that all children attend school for nine years. Australia is supporting these objectives by building or expanding 2000 junior secondary schools in poor and remote areas. These will be completed during 2009 and will create more than 330 000 new places for students in Years 7 to 9. Education standards and quality assurance, gender equity, teacher training and school management are also being improved.

Australia continued to support Islamic schools, which have a significantly lower quality of education than secular schools. Approximately one in four Indonesian children receive at least part of their formal education in an Islamic school.

Health outcomes were also improved, with a particular emphasis on assisting Indonesia reduce the number of women who die during pregnancy and childbirth, and reduce and reverse the spread of HIV/AIDS by 2015.

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Reducing poverty in rural areas

About 18 000 peanut farmers are set to benefit from an innovative program designed to increase rural growth and household incomes in eastern Indonesia. SECTION As part of Australia’s $38 million program, leading peanut-based food manufacturer GarudaFood is working with peanut farmers to increase the supply of fresh raw peanuts in Nusa Tenggara Barat.

GarudaFood will provide peanut seeds and technical assistance to peanut farmers, as well as a guarantee to buy their produce, estimated to be about 12 500 tonnes 2 each harvest.

The project is expected to increase farmers’ incomes by reducing their operating costs and improving the quality and volume of their harvest. The partnership will significantly improve household incomes and contribute to local economic growth.

Other products identified as having market potential include cashews, beef and specialty coffee. The program is a joint initiative of the Australian and Indonesian Governments and is implemented through the World Bank, International Finance Corporation and the Australian Centre for International Agricultural Research.

Australia is helping to improve agricultural productivity in eastern Indonesia and increase access to markets for products such as peanuts, cashews (pictured), beef and specialty coffee Photo: Imran Lapong

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The rate of HIV in Indonesia is among the fastest growing in Asia. Australia committed a further $100 million over eight years to prevent and limit the spread of HIV, improve the quality of life for people living with the virus and alleviate its socio-economic impacts. Work focused on injecting drug users, sex workers and their clients, as well as Papua and West Papua where one in 40 adults has the virus. 2

Avian Influenza remained a serious threat in 2007–08, 35 people were reported to be infected, 31 of whom died. Continued infections in poultry flocks affected the livelihoods and reduced the food source of some of the country’s poorest. Australia worked with national and provincial governments, other donors and multilateral organisations, particularly the World Health Organization, Food and Agriculture Organization, World Bank

SECTION and the United States Agency for International Development.

Key achievements in 2007–08 included: • building or expanding a further 540 junior secondary schools. More than 900 schools have been built to date, providing approximately 148 500 additional places for students • helping to develop national education standards and a quality assurance system, improve examination systems, improve mainstream gender equality in education to keep more girls in school longer and to increase the number of female teachers and administrators, and cater for students with disability • providing more than 300 high achievers and potential leaders with scholarships and fellowships at Australian universities and organisations through the Australian Development Scholarships and Australian Leadership Awards • committing $49 million over four years to make pregnancy and childbirth safer for women in Indonesia’s poorest areas by increasing access to trained midwives, improving maternal and neonatal health services and promoting community support for new and expecting mothers • helping develop a national HIV policy and launching a comprehensive program to educate, test and treat injecting drug users to prevent the spread of HIV and improve their quality of life • improving investigation and response to human cases of Avian Influenza, and training animal health workers in surveillance and response, resulting in earlier detection of outbreaks in poultry.

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Students make great leaps in literacy

Learning to read and write is the foundation for education. In Nusa Tenggara Timur, the Primary Education Program has opened the world of literacy for students in

Ende, Ngada, Nagekeo and Sikka districts. In four years, their literacy rates have SECTION jumped from 48 per cent to 63 per cent, a significant improvement that gives them a better chance for the future.

The improvements are credited to new approaches to teaching, teacher training and better quality education materials, particularly in remote areas. Communities have been involved in sharing ideas about how their children should be educated. 2

As a principal of a rural school in Ende says, classrooms have become more interactive, creating a better learning environment for the students. “The new ways are easily understandable for the children…they are brave to answer questions and to ask questions. Classrooms now are joyful, interesting, challenging, and there is cheerful learning.”

There has also been a significant improvement in gender equality at the schools, with the number of women in school principal and supervisor positions increasing by 79 per cent between 2005 and 2007. Girls are taking leadership roles more frequently.

Students at a school in Nusa Tenggara Timur learn the alphabet as part of efforts to improve literacy Photo: AusAID

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Democracy, justice and governance

Australia is supporting Indonesia’s efforts at national and sub-national levels to strengthen democracy and human rights, improve government accountability and institutions, and stamp out corruption.

2 In 2007–08, local elections were held across Indonesia, including to elect the Governor

of Jakarta. Australia supported civil society to monitor the majority of these elections and to pilot voter education to raise awareness of the electoral process and their rights and responsibilities to vote.

Significant advances were made to improve access to justice. Through the Legal SECTION Development Facility, AusAID worked with the Supreme Court of Indonesia to increase transparency by publishing court judgements and improving access to the courts for poor and marginalised people.

AusAID and the Family Court of Australia worked with the Supreme Court to conduct the first large-scale access and equity study of the religious courts, which preside over family law matters for Indonesia’s Muslim population. The survey found high levels of satisfaction amongst court users, but that others, particularly women and the poor, could not afford or access the courts. As a result, the religious courts will waive fees on certain cases, and provide more hearings in remote locations and better information on how to use the courts.

An independent assessment of the Australian Community Development and Civil Society Strengthening program in April 2008 reported significant positive changes, including greater participation by women and the poor in community planning, and better recognition of the importance of a strong civil society. Domestic violence has been reduced in two districts after village regulations were issued to sanction perpetrators, which has helped to empower women at the household and social level.

Key achievements in 2007–08 included: • assisting local governments in Aceh to deliver a range of services to the community more quickly and cheaply, through best practice governance reforms which are being adopted and self-funded by 35 local governments • mobilising about 12 000 volunteers from the People’s Voter Education Network (Jaringan Pendidikan Pemilih untuk Rakyat) to monitor elections, educate voters and promote campaign transparency • improving access to the religious courts for women and the poor on family law issues • advising the Aceh Jaya district government to prepare regulations for the first simultaneous direct elections in 138 villages, and supporting women’s participation, resulting in the election of the first two female village leaders • strengthening the ability of almost 300 villages to plan for community development, including community-based poverty mapping, to ensure services are delivered where they are needed.

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Safety and peace

Indonesia experienced several small to medium-scale natural disasters in 2007–08 and Australia worked with the Indonesian Government to provide emergency assistance where needed. Australia also worked closely with the Indonesian Red Cross, the International

Federation of the Red Cross and Red Crescent Societies, and the United Nations Office SECTION for the Coordination of Humanitarian Affairs to assess and respond to emergencies.

Australia also provided assistance to communities, and the governments and civil society groups that serve them, to be prepared for, and resilient to, future disasters.

The two largest Muslim organisations in Indonesia, Nahdlatul Ulama and Muhammadiyah, 2 were funded to promote disaster awareness and response. Memoranda of understanding were signed to strengthen Australia’s engagement with both organisations, particularly in disaster management, governance, basic health and education.

AusAID also funds SurfAid International to train communities in disaster mitigation in the Mentawai and Nias Islands, who successfully put the lessons into practice during earthquakes in September 2007.

Reconstruction work is almost complete in Aceh and Australia announced a new five-year commitment to assist the province to build a prosperous and peaceful future after the dual impact of the Indian Ocean tsunami and 30 years of civil conflict left it as one of Indonesia’s poorest provinces.

Key achievements in 2007–08 included: • supporting the World Food Programme to respond to chronic food insecurity in Nusa Tenggara Timur and Nusa Tenggara Barat, resulting in improved nutrition for targeted women and children • contributing to maintaining peace and stability in Aceh following the end of the 30-year secessionist conflict, including by helping ex-combatants to find work • upgrading AusAID’s capacity to respond to disasters, including preparations for a warehouse to store emergency equipment and supplies in Jakarta, training and upgraded deployment equipment.

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Clean water and sanitation improve health, dignity and development

Clean water and sanitation is something most Australians take for granted, but in Indonesia, it’s estimated that only about half the population has these services. That means about 100 million people don’t have access to basic toilets or safe 2

drinking water within easy reach of their homes.

It’s a problem Australia has been working to address in 2500 rural villages across Indonesia, in partnership with the World Bank and Indonesia’s National Development Planning Agency, BAPPENAS. Even more importantly, communities

SECTION have been involved in identifying their needs, planning and building water sources and toilets, and learning better hygiene, such as hand-washing with soap.

In 2007, the percentage of households with access to water tripled, benefiting 4.5 million people, and access to sanitation facilities almost doubled. The biggest improvements in access have been in poor households.

Improved access to water and sanitation services contributes to better health and social and economic development. The changes also give people, particularly women and girls, greater dignity, privacy and safety, as they no longer have to relieve themselves in public places where they were vulnerable to disease and violence.

This success is recognised by other donors such as the United Nations Children’s Fund and the Asian Development Bank, which have adopted similar community- based water supply and environmental sanitation principles.

Australia is also helping the Indonesian Government to implement a national policy for water and sanitation. Local governments in more than half the districts involved in the project have developed water and sanitation plans.

Better access to clean water and sanitation is improving quality of life, health and productivity in poor rural villages, including in South Sumatra Photo: Rani Noerhadhie

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East Asia

According to the World Bank, the developing economies of East Asia continued record high economic growth rates in 2007. China again dominated, with economic growth of 11.4 per cent. Indonesia’s growth accelerated to 6.3 per cent while Cambodia, Mongolia and Vietnam continued to enjoy growth between 8 and 10 per cent. SECTION

However in 2008, the region faces a number of major challenges. Spiralling global food and energy prices will likely contribute to lower economic growth and hurt the poor disproportionately. The spread of infectious diseases, including HIV/AIDS, and potential

pandemics such as avian influenza, remain threats. Corruption, environmental issues such as climate change, rising inequalities caused by poor governance, and the incidence 2 of major natural disasters also pose significant challenges.

During the year, AusAID continued to work with East Asian countries to address these challenges. Assistance focused on supporting clean water and sanitation, education, the environment, economic and democratic governance, health, infrastructure, peace, justice and security, rural development, responding to natural disasters, promoting regional and international economic integration and addressing transboundary threats.

In 2007–08, AusAID country and regional program aid to East Asia totalled $769.2 million. Other Australian assistance through AusAID’s global programs and through other government departments brought total ODA to an estimated $981.4 million.

FIGURE 10: ESTIMATED TOTAL AUSTRALIAN ODA TO EAST ASIA BY COUNTRY 2007–08

China (4%) Philippines (11%)

Burma (2%)

Vietnam (9%)

Regional and other (11%) Indonesia (45%)

Cambodia (5%) Thailand (1%) Laos (3%) East Timor (9%)

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Asia economic

In 2007–08, Australia provided $10.6 million in support of Association of South East Asian Nations-Australia cooperation and $6.1 million for a range of Asia-Pacific Economic Cooperation (APEC) related initiatives.

2 Australia’s support for the Association of South East Asian Nations (ASEAN) continued

its focus on strategic interventions to improve economic integration between the association’s members. For example, the ASEAN Australia Development Cooperation Program helped ASEAN standardise agricultural practices, develop a cargo processing model and advance a range of mutual recognition arrangements to improve prospects for intra-regional trade and service delivery. The program also assisted member countries SECTION develop e-commerce laws and a common approach to e-commerce trading, creating greater opportunities to use new technology for economic transactions.

Australia helped improve regional policies by funding a series of studies—a number of which directly influenced policies in the areas of energy, finance, and trade. A published collection of several of these studies, Brick by brick: the building of an ASEAN economic community, has been popular in the region. Australian support for developing ASEAN- wide standards in food safety, tourism, water management, aquatic animal health and biosecurity is facilitating further intra-regional trade. A February 2008 gender review is guiding the program to ensure that benefits from assistance to ASEAN are more equitably distributed between men and women.

In 2008, Australia and ASEAN agreed to a new stage of cooperation—the $57 million seven-year ASEAN Australia Development Cooperation Program, Phase II—to support ASEAN’s efforts to develop an economic community by 2015. Key elements of the new program are a much stronger emphasis on partnership through joint Australian and ASEAN management, with a specific focus on alleviating poverty in the poorer ASEAN members.

Australia’s support for APEC helped developing economies undertake the reforms necessary to benefit from greater trade and investment liberalisation. Australia’s continued commitment to the APEC Support Fund ($1 million) helped promote regional integration through training in economic governance, trade and investment, energy policy, transport, and human resource development. The Public Sector Linkages Program ($3 million) supported Australian Government agencies and universities to work in partnership with their counterpart agencies in the region to improve governance and management in various technical areas.

Australia’s leadership of the APEC Secretariat throughout 2007 and chairmanship of its Budget and Management Committee in 2008 furthered Australia’s APEC reform objectives and strengthened the secretariat’s project management capacity and quality by establishing a dedicated project management unit. This complements another Australian- funded initiative, a policy support unit, to provide analytical and policy support to APEC’s trade, investment and economic reform agenda.

Australia continued to provide trade-related technical assistance through the Trade Analysis and Reform Project, which helps Cambodia, Laos, Vietnam and Thailand participate in global trade liberalisation and regional economic integration. Through an

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increased contribution of $1 million to the World Trade Organization (WTO) Global Trust Fund, Australia provided trade-related technical assistance to WTO developing country members in the Asia-Pacific so they could participate in the Doha Round of multilateral trade negotiations.

Asia transboundary SECTION

AusAID’s transboundary programs address threats to human security that know no borders. These range from threats to health security, including emerging infectious diseases and HIV/AIDS, to the challenges of human trafficking, illicit drugs, terrorism and disasters.

In 2007–08, regional ODA through Australia’s Asia Transboundary Program totalled 2 $43.1 million.

AusAID reviewed its Asia regional programs (including transboundary) in 2007 in preparation for a new Asia regional strategy in 2008. The Asia regional program and strategy were found to be cost-effective and relevant to regional development priorities. Good outcomes were identified in particular for programs addressing HIV/AIDS and emerging infectious diseases. The large number of short-term activities undertaken through regional programs was noted as posing challenges for sustainability.

Contributing to the fight against HIV/AIDS in Asia

The HIV epidemic continues to expand rapidly in Asia, with 440 000 new infections in 2007. Injecting drug use remains a key driver of the epidemic. The four-year Asia Regional HIV/AIDS Project (ARHP) ended in November 2007 and an independent review identified the following achievements: • a reduction in the rate of injecting drug users sharing injecting equipment in ARHP’s pilot sites, down from 38 per cent to 15 per cent in one Chinese site • closer collaboration between police and health workers from 12 countries and shared understanding of good practice approaches to harm reduction • incorporation of ‘Effective Approaches to Injecting Drug Use & HIV Prevention’ into the training curricula of police academies in the region • development of a national harm reduction action plan by the Vietnamese Government • training of staff and inmates in HIV prevention in mandatory detention centres and prisons • preparation and distribution of HIV harm reduction training and awareness-raising materials and guidelines in Chinese, Burmese, Vietnamese and English.

A new HIV/AIDS Asia regional program has now commenced, building on the successes of ARHP.

Engagement with multilateral organisations to combat animal and human diseases

Australia is a long-standing supporter of the South East Asia Foot and Mouth Disease Eradication Campaign (SEAFMD) managed by the World Organisation for Animal Health (OIE). According to an independent review of SEAFMD in early 2008, the program

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is recognised internationally as a model of excellence for regional coordination in animal health and foot and mouth disease control. Key achievements identified by the review included: • outbreaks reduced in Vietnam • outbreaks prevented in Laos 2

• foot and mouth disease eradicated in targeted districts in Burma and Thailand • foot and mouth disease-free status achieved for several provinces in the Philippines.

In 2007–08 Australia provided $6 million towards implementing the World Health Organization’s Asia Pacific Strategy for Emerging Diseases (APSED), which covers both the

SECTION South-East Asian and Western Pacific regions.

Through APSED, several countries in the Western Pacific region undertook pandemic preparedness exercises in 2007 and 2008, which tested country-level preparedness and identified gaps for rapid containment of outbreaks. During 2007–08, the program also provided technical support to strengthen influenza surveillance systems and to develop national protocols for rapid containment.

Australia’s contributions to the World Bank Trust Fund for Avian and Human Influenza have helped strengthen capacity for surveillance and response in priority countries in South- East Asia. Australia also plays an important role as a member of the fund’s advisory board, providing policy advice on country level proposals.

Combating human trafficking

Trafficking people for sexual or labour exploitation is a serious problem in East Asia. Australia’s assistance aims to reduce the number of trafficking victims and improve the protection, recovery and reintegration of those who have been trafficked.

Australia’s flagship program, Asia Regional Trafficking in Persons, focuses on strengthening criminal justice systems to promote an effective and coordinated approach to people trafficking. In 2007–08, achievements included: • gaining commitment from the governments of Indonesia, Cambodia, Laos and Burma to combat human trafficking, which was demonstrated by their high-level participation in technical working groups set-up to plan and monitor project activities • regularly exchanging information and intelligence on trafficking cases between the heads of specialist trafficking units from all 10 ASEAN countries • strengthening the capacity to detect and process cases of human trafficking by training law enforcement officials and piloting awareness training for judges and prosecutors • developing common standards and counter-trafficking training courses for front line officers, judges and prosecutors, in collaboration with the ASEAN Secretariat and the ASEAN Senior Officials Meeting on Transnational Crime

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• providing technical support for key multilateral partners including the United Nations Office on Drugs and Crime and the United Nations Inter-Agency Project on trafficking • addressing gender dimensions of human trafficking through a gender and development action strategy. A baseline study gauged the depth of counterpart SECTION understanding and acceptance of gender concerns. This information has been used to track progress and plan activities in 2007–08.

Program team members also participate in gender and rights training to ensure they

are well equipped to raise awareness and train counterparts. 2

Police officials in the Philippines learning skills to help them deliver training to front line law enforcement officials on people trafficking. Training took place in Manila from 8 to 13 October 2007 under the Asia Regional Trafficking in Persons program Photo: Australian Embassy, Bangkok

Asia bilateral programs

Vietnam Vietnam’s economic growth and reductions in poverty over the past 20 years make it a development success story. Since 1993, annual real GDP growth averaged around 8.5 per cent and the rate of poverty fell from 58 per cent of the population to 14.7 per cent in 2007. Growth has resulted from accelerated international integration, market liberalisation and private sector job creation. The nature and structure of Vietnam’s economy continues to change as the private sector grows. However, the majority of Vietnam’s population, and the largest number of poor people, live in rural areas. Poverty in Vietnam is concentrated among ethnic minorities who live in remote mountainous areas. Half of the entire population lives on less than US$2 a day and many

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remain vulnerable to sliding back into poverty as result of either economic shocks (such as inflation) or natural disasters.

Australia’s aid program in Vietnam supports the Vietnamese Government’s five-year socio- economic development plan (2006–2010) through six strategic objectives. It is helping the government to: 2

• plan and effectively manage the long-term opportunities and risks of international economic integration to ensure pro-poor growth • adopt better planning and implementation approaches to assist in alleviating poverty among ethnic minorities • implement integrated disaster mitigation approaches, including to address SECTION climate change • adopt better planning and implementation approaches for providing water and sanitation • improve management, financing and coordination of the health sector • identify and prepare for the new set of development challenges associated with 2010 middle-income country status, with the support of development partners.

In 2007–08, AusAID country program aid to Vietnam totalled $71.5 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $92.2 million.

Stephen Smith, Minister for Foreign Affairs, in Hanoi, Vietnam, talking to students from KOTO, an Australia-linked hospitality training restaurant which provides job skills for the underprivileged Photo: Dinh Chinh

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Alleviating poverty among ethnic minorities in Vietnam

With almost 50 per cent of those living below the poverty line now belonging to ethnic minorities (a doubling of the proportion since 2000), poverty in Vietnam in

2010 will be overwhelmingly linked to ethnicity and geography. These trends are SECTION occurring against an overall reduction in national poverty levels (dropping from 19 per cent in 2005 to 14.7 per cent in 2007).

The Vietnamese Government’s principal program addressing ethnic minority

poverty is the National Targeted Program for the Socio-Economic Development of Ethnic Minority and Mountainous Areas (2006–2010). It includes components on 2 infrastructure, agricultural production, capacity building and livelihood support, and its breadth and complexity presents significant implementation challenges. For this reason, Vietnam has asked donors, including Australia, to support planning and implementation aspects.

Girls from the Hmong ethnic minority in North West Vietnam, November 2007 Photo: Simon Cramp

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SECTION

A villager inspects the progress of a young mangrove shoot in Tien Lang District Vietnam. In the district, three hours east of Hanoi, AusAID funded the rehabilitation of three kilometres of mangrove to minimise the impact of typhoon storm surge damage on river communities Photo: Michael Wightman

The Vietnamese Government provides strong leadership on applying the Paris Declaration on Aid Effectiveness and Harmonisation, which has improved Australia’s approach to aid delivery in Vietnam. Through the Partnership Group on Aid Effectiveness and the Like Minded Donors Group, Australia has pursued opportunities to harmonise with other donors and align with Vietnam’s own national programs in rural water, natural disaster risk management, ethnic minority poverty reduction and governance.

Key achievements in 2007–08 included: • establishing systems to strengthen the poor’s access to assistance • increasing the portion of total funding in the rural water supply and sanitation national target program allocated to sanitation investments from 30 per cent to 51 per cent • increasing access in pilot provinces to clean water and sanitation to an additional 232 151 rural people • helping to improve the quality of Vietnam’s planning for further integration into the international economy through the Beyond WTO program • filling 133 Australian Development Scholarships, and awarding 40 Australian Leadership Awards—Fellowships and 16 Australian Leadership Awards—Scholarships.

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Strengthening disaster mitigation in Vietnam

Government statistics indicate that Vietnam loses at least 3 per cent of GDP a year as a result of natural disasters, primarily flooding and typhoons, making it one of the most disaster prone countries in the world. Exacerbating this impact is the SECTION increasing intensity, frequency and impact of natural disasters.

The unique nature of individual disaster events makes it difficult to determine trends in impacts over the short to medium-term. However, the effectiveness of

different policy approaches can be more easily assessed. Based on evidence from Vietnam and other countries, integrated approaches to disaster mitigation, 2 combining infrastructure, capacity building as well as grassroots work with communities in disaster prone areas, are the most effective way to reduce negative impacts. Australia is working closely with Vietnam to strengthen integrated disaster mitigation approaches.

Local school children perform a disaster safety skit at the opening of the AusAID supported Quang Ngai Disaster Mitigation Centre in Quang Ngai province, central Vietnam Photo: Simon Cramp

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Philippines There are three focus areas under the Australia-Philippines Development Assistance Strategy 2007–2011: • economic growth • basic education 2 • national stability and human security.

The first assessment year for the new AusAID strategy was 2007–08 and it will be reviewed and updated during the coming year.

In 2007–08, AusAID country program aid to the Philippines totalled $87.9 million. Other SECTION Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $105.8 million.

Over half of Australia’s aid is to conflict affected Mindanao where peace-building partnerships and programs to improve basic services aim to mitigate the effects of inequality, insecurity and poverty. However, lack of progress in peace negotiations may affect these programs. A conflict analysis is being undertaken to improve the peace- building focus throughout the program.

Despite recent relatively good economic growth, a third of the population continues to live below the official poverty line and wealth inequality is high. The Philippines Government struggles to provide services and opportunities for the poor and is unlikely to meet Millennium Development Goals targets for education and maternal health. AusAID is exploring options to increase the program’s focus on lagging targets.

Rising food and oil prices mean government revenue collection must improve to meet growing needs in basic services and infrastructure, and to provide social safety nets. However, under-performance on tax revenue, a weak and politicised bureaucracy with limited capacity to absorb organisational change, deteriorating international competitiveness, high population growth, internal conflict and a high prevalence of natural disasters, all pose challenges to meeting these needs.

During 2007–08, Australian aid targeted budgetary and institutional reform. This has maximised our ability to assist the government to manage many of these challenges.

Key achievements in 2007–08 included: • funding pilot projects in 8000 schools to improve community and parent involvement in managing school resources • improving student learning outcomes with an education project in Mindanao, which was demonstrated by the results of the assessment tests for mathematics, science and English. Where teachers attended project supported in-service training, students gained higher results • funding the United Nations Children’s Fund to allow more than 200 000 children in target provinces to receive a full program of immunisation against vaccine-preventable diseases. About 700 000 children in Mindanao received inoculations to prevent importation of the wild polio virus from Indonesia

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• implementing community development interventions through the Philippines-Australia Community Assistance Program, which resulted in an 86 per cent improvement in household incomes in target areas • funding technical support to help the government prepare 2007 and 2008 budgets with appropriate allocations for effective service delivery SECTION • funding technical assistance to enable national guidelines on internal audit procedures to be developed and to promote efficient management of department resources. The guidelines are being piloted in the Department of Education and the Department of Public Works and Highways.

China 2 China’s remarkable economic transition has been accompanied by impressive development gains and its emergence as a global power with growing influence as an international donor. China has already achieved its poverty reduction Millennium Development Goal and most other goals are well within reach. Nevertheless, as a lower- middle-income country, many people still lack adequate health, education, clean water and other basic services. China also faces daunting development challenges related to unbalanced, inequitable and potentially unsustainable growth.

Recognising the strategic importance of China’s continued stability and progress to peace and development, Australia’s development cooperation is fostering institutional partnerships between Chinese and Australian agencies to help tackle priority issues in health, environment and governance in both China and the region. Australia also supported China’s emergency relief, recovery and reconstruction efforts after the catastrophic earthquake in May 2008.

In 2007–08, AusAID country program aid to China totalled $30.7 million. Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $41.6 million.

Key achievements 2007–08 included: • establishing in August 2007 an integrated health and HIV/AIDS program to support China’s capacity to halt and reverse the spread of HIV, protect its population against emerging infectious diseases and strengthen its health system • partnering with 14 Chinese ministries and four donors to strengthen the capacity of the state council AIDS working group and provincial AIDS working group to develop multi-sectoral responses to HIV • increasing by 70 per cent the number of HIV patients receiving anti-retroviral treatment at targeted sites in Xinjiang through a joint program with the Clinton Foundation • training for blindness prevention, and treatment and implementation of mobility programs, for the visually impaired

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Australia’s response to Sichuan earthquake

A major earthquake struck Wenchuan county in Sichuan province in southwest China on 12 May 2008. More than 12 000 aftershocks resulted in landslides and quake lakes. Almost 88 000 people died, 374 000 were injured, five million left homeless 2

and thousands of schools and public facilities destroyed.

In consultation with Chinese authorities, the Australian Government provided $2.75 million to assist China’s emergency relief, recovery and reconstruction efforts. At least $2.35 million was also donated by state, territory and local

SECTION governments through the Australian Red Cross.

The Australian Government’s contribution funded:

Emergency relief • $1 million through the International Federation of the Red Cross, delivered by the Red Cross Society of China, for emergency relief supplies. • $1 million package of rescue and recovery equipment (such as lifting and cutting equipment for collapsed buildings), plus relief supplies such as tents, generators, blankets, tarpaulins, jerry cans and water tanks.

Recovery and reconstruction • $500 000 to assist Chinese Government reconstruction planning under the World Bank’s Global Facility for Disaster Reduction and Recovery. • $250 000 for psycho-social support through a joint China Centre for Disease Control and Asia-Australia Mental Health facility to train a network of over 1000 mental health workers in simple effective psychological first aid measures for children and adult survivors and the broader community.

Australia will continue to consider ways to help recovery and reconstruction through its ongoing bilateral development cooperation programs.

Unloading Australian donated rescue and recovery equipment and relief supplies at Chengdu Airport on 23 May 2008 Photo: Kirsty Dudgeon

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• establishing an Australia-China environment development program to help China improve policy development in environmental protection and natural resource management • completing and testing a water entitlements and trading framework to develop a national policy framework for fair trading of water and promoting efficient water use SECTION • developing policy and regulatory approaches for Chinese agencies to deal with social security fraud, and internal control and evaluation methods • developing guidelines on human rights in family planning and reproductive health services which are available as pilots in six provinces and autonomous regions.

East Timor 2 Australia is the lead bilateral donor to East Timor, reflecting a joint commitment to reducing poverty and the importance of the strong ties between the two governments and communities. In 2007–08, the development assistance program grew and became more diverse, with a focus on building and strengthening the institutions necessary for good government, peace and improved service delivery, particularly to the poor.

Australia began a range of new programs to advance the achievement of the Millennium Development Goals and address critical needs in education, health, infrastructure, rural water and sanitation, and youth employment. For example, East Timor has some of the worst health indicators in the region, including for maternal mortality and child malnutrition. Australia boosted its funding to assist East Timor to implement its national health plan, which focuses on improving basic health and hospital services for women and children. Access to clean water and sanitation and improving food security are also priorities.

While positive steps were made during the year, challenges remain. Security and political stability was tenuous as evidenced by the attacks on East Timor’s democratically elected leadership in February 2008, and the continued reliance on international forces to maintain internal security. Australia continued to provide humanitarian support for people displaced by the 2006 conflict and the Australian Federal Police provided ongoing training to create an effective national police service. This environment made it difficult to achieve significant social and economic progress but the newly elected Government of East Timor began a broad change agenda to which Australia is providing significant support. Our assistance is aligned with East Timor’s national development priorities and coordinated with other donors. Support is provided to international and local non-government organisations, civil society and community groups.

In 2007–08, AusAID country program aid to East Timor totalled $56.7 million. Other Australian assistance through AusAID’s regional and global programs and other government departments (most notably the Australian Federal Police) brought total ODA to an estimated $86.4 million.

Key achievements in 2007–08 included: • assisting the East Timorese Government to deliver a fiscally responsible 2008 budget, on time and aligned with the government priority to spend oil revenue on better services for its people

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• building the financial management and procurement skills of the public service to manage resources and deliver better services, and strengthening parliamentary oversight of legislation, budgeting and expenditure • promoting democracy and reconciliation in communities through leadership and communication training, including for parliamentarians, judges, public servants, leaders of internally displaced persons’ camps, and women’s and youth groups 2

• trialling improved seed varieties and crop management techniques in about 550 farms, more than doubling yields in some cases, while building food security through emergency relief, improved community nutrition and better disaster planning • providing employment and career counselling services and job matching to young men

SECTION and women, which has helped almost 1700 people since March 2008 • helping local entrepreneurs and youth cooperatives to access, understand and bid on international contracts, and matching local suppliers with demand from international aid organisations • designing a program to improve access to clean water and sanitation in rural areas and teach people good hygiene, which will build on improvements achieved through small-scale community-based projects • commencing a study of the tendency amongst East Timorese not to use formal health care services, which will be used to improve future health service delivery and access • facilitating constructive dialogue between members of the legal and media communities and the government and parliamentarians, to inform a new media law that promotes freedom of speech and the press, and supports balanced, informative and high quality election coverage.

In East Timor, Australia is funding training for young people in skills such as electronics and carpentry to improve their employment prospects Photo: Jenny Da Rin

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Cambodia Cambodia’s progress towards meeting the 2015 Cambodia Millennium Development Goals is mixed. The goals are based on the global Millennium Development Goals but include an extra goal and targets to measure progress on de-mining.

Good progress has been made in Cambodia in the areas of education, HIV/AIDS control SECTION and de-mining. Extreme poverty has declined with the most recent household survey data (2004) showing that 35 per cent of Cambodians live below the national poverty line compared with 47 per cent a decade earlier. Rural poverty however, remains a serious challenge. Some progress has been made in reducing infant and child mortality rates but

Cambodia lags behind neighbouring countries on this issue. The maternal mortality rate in 2 Cambodia remains disturbingly high, showing little improvement since 2000. Cambodia’s poor remain disadvantaged under the legal and judicial system—a stronger rule of law is critical to ensuring development gains are sustained and enjoyed by all Cambodians.

In 2007–08, AusAID country program aid to Cambodia totalled $31.7 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $46.7 million.

Key achievements in 2007–08 included: • assisting the United Nations Development Programme’s Clearing for Results project to remove over 7600 landmines from 781 hectares of land. Already 134 hectares of cleared land have been allocated to poor beneficiaries, rural infrastructure has been developed and assistance provided to communities and landmine survivors to create sustainable livelihoods • contributing to better treatment of prisoners, improving procedures for handling juvenile offenders and increasing community safety, including through employment of out-of-work youth, and through Australian-funded prison, court and crime prevention projects in Kandal Province. The success of this initiative has resulted in support for prisons, courts and community crime prevention being expanded to two new provinces • ensuring the Cambodian treasury can provide certainty that budgeted resources will be available and released in a timely manner through a major multi-donor public financial management program. This achievement sets the stage for the next phase of the reform program, focusing on more transparent and efficient use of resources in service delivery ministries such as the health ministry • cooperating with other development partners to help build the Cambodian Government’s capacity to manage a relatively peaceful national election. For the election in July 2008, the Cambodian Government provided the majority of finance, accurately registered 89 per cent of voters, recruited and trained 90 000 polling officials and produced education materials as well as ballots • supporting the Khmer Rouge Tribunal, which is bringing justice to the victims of the Khmer Rouge period. Five individuals are now held in detention, charged with a range of war crimes and crimes against humanity, and will be tried in 2008. The work of the tribunal is also helping strengthen Cambodia’s broader judicial system.

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Laos As a least developed country, Laos faces many challenges in meeting its Millennium Development Goals. However, it continues to make good progress in poverty reduction through its ongoing focus on economic reform and improved service delivery.

In 2007–08, AusAID country program aid to Laos totalled $16.2 million. Other Australian 2 assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $27.7 million.

Australia’s development objectives in Laos for 2007–08 were: • helping to build human capital by improving access to education, and supporting the SECTION application of new skills and knowledge • strengthening the enabling environment for private sector development and promoting regional integration • reducing vulnerability of the poor by mitigating the impact of natural disasters and reducing the danger of unexploded ordnance.

Key achievements in 2007–08 included: • improving primary enrolment and attendance rates, especially for girls, in three northern provinces through the Access to Basic Education in Laos initiative, delivered in partnership with the World Food Programme and United Nations Children’s Fund. Through this initiative Australia has provided water supply to 91 schools, built 117 school latrines benefiting 41 516 school children (45 per cent of whom are girls), distributed 850 hygiene and health tool kits, provided school meals to 87 408 students, and improved nutrition for 271 281 students and families • taking a lead role in coordinating international assistance for reform of trade policies and procedures in Laos. Australia helped establish a national implementation unit to coordinate trade related donor assistance to the sector and ensure that it aligns with government priorities. Australia is working with other donors to contribute to an improved legal and regulatory framework for trade, assist Lao participation in international and regional trade agreements, and improve export competitiveness and trade opportunities • helping over 1040 households and 16 440 people in two provinces that are heavily contaminated with unexploded ordnance (Savannakhet and Khammouane) to improve their livelihoods through access to cleared land. This has also enabled improvements to agricultural productivity and created income-generating opportunities • leading a multi-donor team to assist the Ministry of Education develop a 10-year strategic framework for the sector, which unifies policies and government priorities and will greatly enhance the efficiency and effectiveness of education sector development assistance.

Greater Mekong sub-region The Greater Mekong sub-region is one of the fastest growing in the world with an annual average growth rate of over 6 per cent of GDP. As a result of this sustained economic growth, all countries in the sub-region have made significant inroads into reducing poverty.

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However, there are still many development challenges. About 310 million people in the sub-region live in rural areas and depend on subsistence or semi-subsistence agriculture for their livelihood. Poverty is concentrated among ethnic minorities and socially disadvantaged groups. The sub-region also suffers from serious gender inequalities.

In 2007–08, Australia commenced a new $152 million four-year development assistance SECTION program aimed at reducing poverty in rural areas by improving transportation and trade access, and increasing availability of efficient and sustainable electricity. The program is being primarily implemented in partnership with the Asian Development Bank and the World Bank. In 2007–08, Australia maintained its long standing program of assistance for

integrated water resource management in the Mekong River Basin in partnership with the 2 Mekong River Commission.

Key achievements in 2007–08 included: • improving access for rural communities to major transport corridors by upgrading feeder roads in northern Laos and feeder roads and canals in the Mekong Delta. AusAID is assisting construction and monitoring activities along the southern coastal corridor in Vietnam and Cambodia and has worked with the Asian Development Bank to design and implement an HIV prevention program for construction workers and local communities around major infrastructure projects. The agency has also ensured that gender analysis and strengthened social and environmental impact mitigation measures are included in the funded infrastructure projects • helping to implement the Asian Development Bank’s Cross Border Transport Agreement. AusAID funding has helped forge agreement from all greater Mekong sub-region countries for a customs transit system for goods, vehicles and containers. The agreement has been implemented at the Dansavanh-Lao Bao border crossing— the first of 15 priority crossings in the sub-region. This has reduced crossing times from an average of four hours to 70 to 80 minutes for trucks, and from two hours to 30 minutes for cars • establishing a $30 million, four-year program with the World Bank to improve rural electricity supplies, reduce power losses in transmission and promote renewable energy in Vietnam, Laos and Cambodia. In Laos, Australia will help connect 170 villages to the national grid to provide electricity to 11 500 households, and increase to 20 000 the number of households using solar electricity. In Cambodia, where only 6 per cent of rural households can access electricity, electricity supply will be extended to an additional 13 000 households and small enterprises in rural areas • establishing new climate change initiatives in partnership with the Mekong River Commission and the CSIRO. Australian assistance will focus on climate change research and adaptation measures, especially in relation to food security, strengthening the Mekong River Commission and the National Mekong Committees, and assisting basin development planning. The cooperation program between the Murray Darling Basin Commission and the Mekong River Commission has been extended to 2010–11.

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Burma

Burma is one of the poorest countries in South East Asia with around half the population of 50 million living below the poverty line. The country ranks 132 out of 177 on the Human Development Index, which measures basic human development data across countries. Ongoing internal conflict, confiscation of land, and discrimination have resulted 2

in up to one million people being internally displaced and has produced large refugee populations in neighbouring countries.

Australia’s assistance to Burma is primarily humanitarian and delivered through United Nations agencies and international non-government organisations. In 2007–08, this assistance focused on addressing basic health, education, livelihoods and protection SECTION needs of vulnerable populations inside Burma and on the Thai-Burma border.

Assistance was also provided to address significant transboundary development issues such as HIV/AIDS, avian influenza, people and drug trafficking.

In 2007–08, AusAID country program aid to Burma totalled $7.1 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $17.9 million. In May 2008, Cyclone Nargis hit Burma causing massive loss of life and widespread devastation. An estimated 2.4 million people were affected in 40 townships. This compounded the ongoing protracted humanitarian crisis. As an initial response to Cyclone Nargis, an additional $25 million was allocated as part of AusAID’s global humanitarian and emergency programs.

Australia provided emergency food aid to Burma following Cyclone Nargis, May 2008 Photo: Anna-Leena Rasanen, World Food Programme

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Key achievements in 2007–08 included: • improving and promoting sustainable livelihoods in northern Rakhine State and Shan State by establishing community forestry land in remote areas and enabling 2700 households access to at least one acre of land • improving health indicators in Burma, including by treating four million school children SECTION for worm infestation, resulting in reduced anaemia • implementing more effective protection mechanisms for vulnerable people, including internally displaced people, women, children and juveniles in conflict with the law, through initiatives such as the first tertiary level post-graduate diploma course in

social work in Myanmar, with 120 students currently enrolled in the course 2 • rapid emergency assistance to Burmese affected by Cyclone Nargis.

Mongolia In 2007–08, AusAID country program aid to Mongolia totalled $2.4 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $5.0 million.

The Mongolia program concentrates on human resource development needs with an emphasis on agriculture, energy, mining and the private sector. The main delivery mechanism has been the Mongolia-Australia Targeted Capacity Building and Small Activities Facility, which was completed in June 2008 and replaced by the Mongolia Australian Scholarships Program. The new program will provide scholarships and human resource development advisory support to targeted government agencies. The number of scholarships will double from 14 to 28 over three years.

Key achievements in 2007–08 included: • graduating 37 Australian Development Scholarships scholars from postgraduate courses. The graduates were re-employed by their respective agencies and 12 were promoted to senior Mongolian Government positions • placing 18 new scholars in Australian universities • placing 20 Australian Youth Ambassadors for Development in a range of fields including the media, business development, public health, environmental engineering and cultural heritage • funding small health and education activities through the Small Activities Scheme, which improved education opportunities for children with disability and Mongolia’s HIV/AIDS response • creating 209 work places for the unemployed through the Small Activities Scheme.

Thailand Australian bilateral assistance to Thailand is being phased out in accordance with Thailand’s economic development and in response to the Thai Government’s desire to move from being an aid recipient to aid donor.

In 2007–08, AusAID country program aid to Thailand totalled $167 368. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $8.8 million.

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Assistance focused on strengthening linkages between Australian and Thai public sector organisations and election monitoring.

South Asia

South Asia is home to 23 per cent (1.5 billion) of the world’s population, with an 2

estimated 400 million people still living in absolute poverty. The region will have a substantial impact on global achievement against the Millennium Development Goals, yet progress towards these goals in South Asia is insufficient to meet 2015 targets and progress has been marked by persistent social inequalities.

SECTION While economic growth has been strong over the last five years, large-scale investments are required to overcome infrastructure constraints to growth. In 2006 growth rates ranged from 7 per cent (Bangladesh and Sri Lanka) to 9 per cent (India).

This growth benefited some poor, but only marginally—the trend has been increasing disparity and social exclusivity. Growing inequality across the region principally affects the rural poor. The rapidly intensifying burden of food price rises is felt disproportionately by poor people.

The region is also subject to major natural disasters, violent civil conflict, political instability and corruption, and faces potential impacts as a result of climate change.

In 2007–08, Australia’s aid program to South Asia focused on: • improving basic service delivery in health, education and natural resource management • direct poverty alleviation • community rehabilitation, peace building and effective response to humanitarian concerns.

The program strengthened education systems through teacher training, in-service training and support, policy development and improved governance. Health systems were strengthened through interventions in nutrition, water and sanitation, HIV/AIDS prevention and governance. The program raised living standards and increased income opportunities for poor and vulnerable communities, including through forest management programs. It strengthened its focus on social inclusion and on the impact of development initiatives on women. Australia responded effectively in meeting the needs of communities affected by civil conflict and natural disasters. Peace building and community rehabilitation programs helped strengthen affected communities.

The South Asia program consists of country programs in Bangladesh, Nepal, Sri Lanka, India, the Maldives and Bhutan, and a regional South Asia program that addresses aid priorities in South Asia on a regional/multi-country basis (and includes some support to Pakistan and Afghanistan).

In 2007–08, AusAID’s country and regional program aid to South Asia totalled an estimated $66.8 million. Other Australian assistance through AusAID’s global programs and through other government departments brought total ODA to an estimated $114.0 million.

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FIGURE 11: ESTIMATED TOTAL AUSTRALIAN ODA TO SOUTH ASIA BY COUNTRY 2007–08

Regional and other (12%)

Bhutan (3%)

Maldives (4%) SECTION Bangladesh (41%)

2 Sri Lanka (26%)

India (7%) Nepal (7%)

Bangladesh Despite good progress over the last decade, Bangladesh remains one of the poorest and most densely populated countries in the world, with over 80 per cent of the country’s population of 150 million living on less than US$2 a day, and at least 30 million classified as ‘extreme poor’.

Maternal mortality rates remain unacceptably high, with an estimated 13 000 women dying every year due to complications during pregnancy or childbirth—one woman every 45 minutes. The rate of child malnutrition also remains one of the highest in the world, and around half of the country’s children are stunted. While there has been good progress in achieving the Millennium Development Goal of gender parity in school enrolment at the primary level, systemic problems remain. The education system has struggled to cope with the increased number of students, quality of teaching is poor and there is inequity in access to educational services.

In 2007–08, AusAID country program aid to Bangladesh totalled $33.9 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $46.5 million.

AusAID’s program in Bangladesh focused on three main areas: health, education and direct poverty reduction. In addition, Australia supported Bangladesh to respond to several emergencies including two floods and a cyclone.

Key achievements in 2007–08 included: • improving the quality of government primary schools by training 68 000 teachers and 4500 teacher trainers. Support was also provided to 32 000 non-formal primary schools serving a total of 984 440 children (with attention to those with disability and ethnic minority students). AusAID’s work in education is implemented by the United Nations Children’s Fund and local non-government organisation BRAC

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• launching two new health programs in maternal and child health, which total $44.5 million over four years and will be implemented by UNICEF and BRAC. During the pilot phase for the programs, maternal deaths in one district were reduced to 240 per 100 000 live births (significantly lower than the national ratio of 320) • granting productive assets, such as cows, goats, poultry or vegetable seeds for planting, to 40 000 rural women and providing relevant enterprise training, such as 2 livestock and poultry rearing or gardening. This initiative was also supported by other donors and implemented by BRAC • providing more than $10 million in emergency assistance to people affected by Cyclone Sidr, including immediate food relief supplies to 800 000 people and nutrition supplements to 16 000 pregnant women and nursing mothers. Support also included SECTION provision of income generating assets such as rickshaws, boats and sewing machines, and assistance for children to go back to school by rebuilding around 2000 destroyed and damaged schools. These programs were implemented by a range of multilateral partners and non-government organisations.

From a life of hardship to a life of dreams

In 2007 Australia commenced a four-year $39 million program to support the innovative and highly successful Challenging the Frontiers of Poverty Reduction program, implemented by BRAC, the largest non-government organisation in Bangladesh. The program aims to lift four million people out of poverty by 2011 by providing the poor with productive assets such as cows or goats, delivering intensive training to ensure income can be generated from these assets, and providing a regular cash stipend until their new small businesses create a stable livelihood. Program recipients are the poorest of the poor who are often beyond the reach of development programs. The initiative has a direct impact on women’s ability to control the economic, health and social decisions in their lives.

Laily comes from Rangpur, a Northwest district of Bangladesh. She lived in extreme hardship with a family of seven including five children. Her husband could not work due to acute asthma. Laily was the only income earner in their large family but with her poor daily wage, she could barely buy food, let alone provide proper medical treatment for her husband.

Laily joined the Challenging the Frontiers of Poverty Reduction program and undertook horticulture nursery as an income generating enterprise. BRAC leased 0.10 of an acre of land to her and provided training on nursery skills as well as fertilisers and seeds. Starting with an initial BRAC asset grant of $105, after two years Laily earned the equivalent of $390.

With the income from the nursery Laily diversified by buying two cows and a goat. She paid for some treatment for her husband and was also able to pay $95 for her daughter’s wedding. As a result of the treatment, her husband was able to do light work, and Laily is planning to set up a small shop for him that will bring further solvency to their family.

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Laily’s status is now improved. She has a regular income as well as moderate savings. She is aware of her legal and social rights, and no longer feels so vulnerable to natural disasters or other shocks. Her children are now studying at school and she dreams of bright things for their future. SECTION

Laily, a member of BRAC’s Challenging the Frontiers of Poverty Reduction program, taking care of her nursery that lifted her out of poverty Photo: BRAC, Bangladesh

Sri Lanka Sri Lanka has enjoyed ongoing economic growth, yet there remain significant inequalities in income distribution. Growth has not been matched by appropriate investment in infrastructure and basic service delivery. A protracted civil conflict has caused the deaths of tens of thousands of people and displaced hundreds of thousands more. The associated high level of defence spending means scarce resources are being diverted from urgently needed social and economic development programs.

Sri Lanka is not on target to meet the Millennium Development Goals. Around 50 per cent of the population is undernourished and 25 per cent live below the national poverty line. Only 37 per cent of rural children master local language skills and just 38 per cent have numeracy skills. Under-five child mortality rates of 19 in 1000 mask serious regional disparities of up to 50 in 1000. Gender equality in education enrolments is not reflected in the workforce where, for example, the proportion of women in wage employment in the non-agricultural sector is a low 30 per cent, and women hold only 5 per cent of seats in the national parliament.

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SECTION

Mine action support, including clearing landmines and unexploded ordnance in Mannar and Vavuniya districts of Sri Lanka, enabled the resettlement of over 100 000 people who were displaced by the civil conflict Photo: Peter Davis

In 2007–08, AusAID country program aid to Sri Lanka totalled $9.3 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $29.5 million.

AusAID’s program in Sri Lanka focused on peace building, community rehabilitation, humanitarian assistance, natural resource management and education.

Key achievements in 2007–08 included: • helping to meet the basic humanitarian needs of 300 000 people displaced by violent civil conflict with support through United Nations agencies and Australian and other international non-government organisations • strengthening engagement from the local business sector to promote peace by supporting a national network of chambers of commerce, and by developing private- public partnerships to build peace • improving forest management, including better forest protection, to improve the livelihoods of over 16 500 people in poor rural communities. The average monthly income has increased from 2500 to 5000 Sri Lankan rupees and the success of this initiative means the Sri Lankan Forest Department will expand the project model nationally.

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Nepal Political instability and a decade-long armed conflict have impeded development in Nepal. However, 2007–08 did result in successful constituent assembly elections and the country’s declaration as a Republic. Economic growth in 2007–08 was 4.7 per cent.

Nepal is making steady progress against some of the Millennium Development Goals, SECTION although is not on target to meet most of them. Over 30 per cent of Nepalese live in abject poverty, with 68 per cent living on less than US$2 a day. Poverty has declined by over 11 per cent in the last decade but income inequality is increasing. Primary education completion rates improved from 51 per cent in 1991 to 76 per cent in 2006, and the

maternal mortality rate halved between 1990 and 2000. Child mortality fell from 118 per 2 1000 live births in 1996 to 61 in 2006 and is on target to meet Millennium Development Goal 4.

In 2007–08, AusAID country program aid to Nepal totalled $4.7 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $8.1 million.

AusAID’s program in Nepal focused on poverty reduction, water and sanitation, democratic rights, peace building, disaster management and improved governance for basic service delivery. It also included new initiatives in maternal and child health, and education.

AusAID officer Kim Pendreigh gives a dose of Vitamin A to a young child in the Lalitpur district of Nepal. All Nepali children under the age of five are given Vitamin A and deworming tablets twice a year under the National Vitamin A Expansion Program Photo: Andrew Adzic

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Key achievements in 2007–08 included: • improving child mortality by helping maintain Vitamin A coverage in Nepal at over 95 per cent and supporting the Community Based Management of Childhood Illness program • supporting 63 water and sanitation schemes in the two most underdeveloped regions

2 of Nepal through a United Kingdom Department for International Development project.

The initiative provided potable water to over 200 000 people in western Nepal and significantly improved sanitation and hygiene in the region—latrine usage increased by up to 70 per cent • heightening awareness of democratic rights and voters’ understanding of the

SECTION electoral processes with targeted awareness and capacity building activities for women and marginalised communities through the Rights Democracy and Inclusion Fund. The fund is a multi-donor fund managed by the United Kingdom Department for International Development and implemented through national and international non-government organisations • improving the livelihoods of over 1400 poor and marginalised people in two rural districts of Nepal through entrepreneurship training and support. About 80 per cent of these beneficiaries are women and 51 per cent belong to ethnic minorities • signing a $10 million funding arrangement with the Nepalese Government to support its Education for All Program, also supported by eight other donors • reintegrating, rehabilitating and providing psycho-social support to 908 children associated with armed forces and groups, and 2632 other vulnerable children through the Save the Children Alliance.

Other South Asian nations In 2007–08, AusAID country program aid to other South Asian nations, including India, the Maldives and Bhutan, totalled $5.8 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $29.9 million.

Assistance was primarily targeted at human resource capacity development, HIV/AIDS, and post-disaster reconstruction.

AusAID assistance to India was relatively modest, with other government departments contributing around half of total assistance. AusAID’s program in India is strategically targeted at HIV/AIDS, support for NGOs, scholarships, and improved governance for better service delivery and economic growth.

Key achievements in 2007–08 included: • supporting the implementation of public sector reform in Bhutan by strengthening Bhutan’s capacity to deliver quality management training • limiting the spread of HIV/AIDS from intravenous drug users in South Asia by strengthening civil and government capacity and using peer based interventions • training 194 government finance officials (including 127 from India) in economic reform and management

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The AusAID supported school feeding program in Bhutan makes it possible for poor households to send their children to school. Over 40 000 students from poor rural families are currently supported under this program, attending schools like Thinleygang (pictured) located in the rugged isolated mountain regions of Bhutan Photo: Andrew Adzic

• providing 29 new scholarships in Bhutan, 23 in the Maldives and 5 in India for students to undertake tertiary studies in Australia • providing Australian construction experts to assist the Maldives with post-tsunami reconstruction.

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Africa

The Australian Government has stated its intention to reinvigorate its engagement with Africa and the aid program will play a part in this. During 2007–08, AusAID commenced work on a new strategy to guide future Australian assistance to the continent.

2 In 2007–08, Australia’s estimated ODA to Africa was $101.2 million. Most of this was

delivered through AusAID’s Africa Regional Program ($43 million), humanitarian assistance and non-government organisation programs. In addition to this direct assistance, Australia provides aid to Africa indirectly through contributions to the World Bank, various United Nations agencies and global funds. SECTION The focus of AusAID’s regional program in Africa was on promoting good governance and improving the delivery of basic services, especially in the areas of health and food security in South Africa, Lesotho, Swaziland, Mozambique, Zambia, Malawi, Tanzania, Kenya and Uganda.

A significant proportion of Australia’s aid to Africa is for humanitarian relief. Australia announced $45 million in humanitarian assistance to Africa during the year, more than half of this directed toward the ongoing crisis in the Darfur region of Sudan. Our engagement with Sudan—both in Darfur and in the south—was our largest contribution to a single African country. Australia ranked as the fourth-largest bilateral donor to the World Food Programme’s emergency operation in Sudan for two years running (2006 and 2007), which has earned Australia a high and positive profile, and demonstrated a willingness to respond to a serious humanitarian crisis.

The humanitarian situation in Zimbabwe deteriorated during 2007–08 with soaring inflation, chronic shortages of food and fuel, localised drought and flooding, and persistent poverty. The elections in March and June 2008 further destabilised the precarious social and economic situation. Along with other concerned international donors, Australia contributed much-needed humanitarian assistance to the people of Zimbabwe.

The violence which erupted around the elections in Kenya and Zimbabwe showed that democratic governance in Africa can be fragile. The Australian aid program responded promptly to both these crises, providing essential humanitarian support for people displaced by the violence and special targeted assistance including support to civil society organisations in Zimbabwe that are working for change and promoting democracy, good governance and human rights. Support was also provided to Australian non- government organisations and their partners in Kenya to provide conflict resolution and reconciliation services.

Key achievements in 2007–08 included: • strengthening trade policy development at country and regional levels by establishing a database, and helping to build capacity of government policy makers and trade negotiators. This will benefit 14 Southern African Development Community member states as well as target countries of East Africa • strengthening citizen participation in parliamentary systems in Malawi, Lesotho, Uganda and Tanzania by establishing and developing public participation frameworks

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• strengthening public sector governance systems by supporting partner government projects, including the Association of Parliamentary Accounts Committees, to build capacity among African legislatures • increasing public sector capacity in African countries, especially in the areas of public health and public policy and administration, by providing 98 Australian Development Scholarships in 2007 for post graduate study in Australia SECTION • increasing the capacity of the Hamlin Addis Ababa Fistula Hospital to enable it to treat more than 2500 women a year for the debilitating condition of obstetric fistula • leveraging US$20 million from the Global Fund for AIDS, Tuberculosis and Malaria for

work in Malawi 2 • working with the United Nations Children’s Fund through the Mozambique Government to provide basic material support to 14 000 children (including half of all child-headed households in the country) • partnering with the World Bank Water and Sanitation Program to encourage sector reform and improve service delivery in Kenya, Mozambique, Rwanda, Ethiopia, Uganda and Tanzania.

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Middle East and Central Asia

Iraq AusAID activities in Iraq continued to support international efforts to establish stability and helped reconstruction activities. Australia’s focus is to provide humanitarian assistance, develop Iraqi capacity through public sector reform and assist in the 2 rehabilitation of essential services, particularly health and agriculture. Since 2003, Australia has provided over $195.5 million in humanitarian and reconstruction assistance to Iraq.

Australia supports the International Compact for Iraq, an initiative of the Iraq Government

SECTION and the international community. The compact’s aim is to strengthen peace and capacity by committing the Iraq Government to a series of political, social, security and economic reforms over the next five years in exchange for a substantial increase in international assistance. It will focus primarily on Iraq’s economic transformation and integration into the regional and global economy.

Australia’s activities have provided humanitarian assistance to internally displaced people and Iraqi refugees in neighbouring countries, and increased the capacity of civil authorities by training civil servants and police.

In 2007–08, AusAID humanitarian aid to Iraq totalled $21.7 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $23.2 million.

Key achievements in 2007–08 included: • providing training in Australia for over 110 Iraqi officials, including from the ministries of agriculture, finance, and human rights • supporting internally displaced people and Iraqi refugees in Syria and Jordan • providing emergency food assistance to vulnerable Iraqis affected by rising food prices and drought • providing demining and mine education programs in southern Iraq • supporting the law and order taskforce by providing technical assistance and expertise to the Iraq law and justice sector • training over 200 medics and ambulance drivers in basic life support, and 12 emergency physicians.

Afghanistan Australia continues to support Afghanistan’s development, having provided $325 million in official development assistance since 2001.

In 2007–08, AusAID humanitarian aid to Afghanistan totalled $62.5 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments brought total ODA to an estimated $131.0 million.

Reconstruction and development efforts in Afghanistan are underpinned by the priorities and goals of the Afghanistan Compact and the Afghanistan National Development Strategy,

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launched in Paris on 12 June 2008. The national development strategy is Afghanistan’s five-year development blueprint.

With the support of Australia and the international community, the Afghan Government has made important gains that will improve the lives of the Afghan people. SECTION The Australian aid program to Afghanistan in 2007–08 continued to improve governance, security and essential services such as health and education. Australia delivered training and capacity building activities to key ministries including health, education, rural reconstruction and development, agriculture, irrigation and livestock. The program also focused on improving infrastructure including water supply and sanitation, rural roads and irrigation, and on assisting the victims of land mines. Humanitarian assistance 2 was provided in response to conflict and drought and for the continuing reintegration of refugees from Pakistan and Iran. In late 2007, AusAID deployed the first of its development advisers in Oruzgan province in southern Afghanistan to support the reconstruction efforts of the Australian Defence Force’s Reconstruction Task Force.

Key achievements in 2007–08 included: • sponsoring 10 ongoing and new scholarship places in Australian universities for Afghans studying for diplomas and masters degrees • developing government capacity through public management training for over 550 civil servants • improving rural infrastructure including water supply and sanitation, irrigation and contributing to the rehabilitation of over 3000 kilometres of road • enhancing rural livelihoods through agricultural research, employment generation and the provision of small loans to more than 350 000 borrowers in 23 provinces • supporting the salaries of approximately 64 000 Afghan police to provide law and order services across Afghanistan • providing food aid to approximately 150 000 people affected by drought and rising food prices • providing emergency medical care in remote and conflict affected areas in east and south Afghanistan • strengthening the provision of comprehensive eye care services in five regional hospitals • delivering primary education to about 10 000 students (70 per cent female) across eight central and eastern provinces.

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Australia provides further assistance to Afghanistan

On 12 June 2008, Stephen Smith, Minister for Foreign Affairs, pledged a further $250 million in reconstruction and development assistance to Afghanistan over the next three years. 2

This will assist Afghanistan to provide better health and education services, secure food supplies in the face of rising world prices, strengthen its police force and expand mine action programs.

Building Afghan capacity remains Australia’s number one priority. For example, SECTION AusAID’s Development Assistance Facility for Afghanistan will continue to deliver basic training directly to key ministries such as health, education, agriculture, irrigation, livestock, and rural reconstruction and development.

Where possible, our support will also complement the work of the Australian Defence Force’s reconstruction team in Oruzgan province.

Mr Smith made the announcement at the International Conference in Support of Afghanistan in Paris. This pledge reflects Australia’s growing commitment to development and reconstruction in Afghanistan.

The conference launched the Afghanistan National Development Strategy, which provides a common framework for the implementation of programs in support of the Afghan Government in the coming five years. Australia will align its development assistance to the strategy’s goals in the key areas of security, governance, rule of law and human rights, and economic and social development.

Workers build roads in the Hindu Kush Mountains near Mazar. Since 2003, the Australian Government, through AusAID, has helped generate employment for Afghans through programs that have provided more than six million labour days across all 34 provinces Photo: Stephen Dupont

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Pakistan Despite experiencing economic growth of more than 6 per cent a year since 2003, around 25 per cent of Pakistanis (some 40 million people) still live below the national poverty line. Pakistan’s progress towards Millennium Development Goals in health and education has been slow and will require continued support from both the Pakistani Government and the donor community. SECTION

The border regions between Pakistan and Afghanistan are home to some of Pakistan’s poorest and most marginalised populations. This area is characterised by chronic poverty, inadequate infrastructure, poor and non-existent social services and a lack of economic

diversification and employment opportunities. 2

Australia’s aid program supports Pakistan’s efforts to achieve Millennium Development Goal targets for universal education, to reduce child mortality and improve maternal health, with special emphasis placed on the poorer border regions. The program also builds human capital by providing scholarships, promotes agricultural linkages between Pakistan and Australia, and is supporting reconstruction and rehabilitation in northern Pakistan after the October 2005 earthquake.

In 2007–08, AusAID country program aid to Pakistan totalled $19.6 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments bought total ODA to an estimated $26.7 million.

Key achievements in 2007–08 included: • providing school supplies to 826 boys schools in the border province of Balochistan, complementing supplies provided to girls schools in previous years, and training 228 women’s village education committees to assess and identify physical needs of schools • bringing 101 students to Australia to study under the Australia-Pakistan Scholarships Scheme and Australian Development Scholarships • training 135 primary-level health workers in primary eye care, and providing three district hospitals with primary eye care training equipment • constructing 42 permanent primary schools in earthquake affected areas of Azad Jammu, Kashmir and the northwest Frontier province • providing food assistance to approximately 294 000 people affected by rising food prices and drought • providing technical assistance (including limewashing techniques) that increased the profitability of Pakistani mangoes in the international market.

Palestinian territories The overarching aims of the Middle East (Palestinian territories) program are to alleviate poverty and provide humanitarian relief and protection for Palestinians in the occupied territories and surrounding region.

The launch of the Palestinian Reform and Development Plan in Paris in early 2008 was a major achievement by the Palestinian Authority. Australia, represented by Parliamentary

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Secretary for International Development Assistance, Bob McMullan, made a significant commitment to support its implementation.

Australia also continued to respond to the emergency facing many vulnerable people in the region through appeals such as the International Committee of the Red Cross 2008 emergency appeal. 2

In 2007–08, AusAID country program aid to the Palestinian territories totalled $23.9 million. Other Australian assistance through AusAID’s regional and global programs and through other government departments bought total ODA to an estimated $42.0 million.

SECTION Key achievements in 2007–08 included: • providing $24 million to support the reform and development of the Palestinian Authority through a World Bank-managed trust fund (including $20 million pledged at the Paris Donors’ Conference in January 2008) • providing humanitarian relief for Palestinian refugees totalling $15 million though the United Nations Relief and Works Agency, including food assistance and mental health programs in Gaza, and health programs in the West Bank • supporting the United Nations Mine Action Service to clear cluster munitions and other unexploded ordnance in southern Lebanon • completing the first phase of the Australia Middle East non-government organisation cooperation agreement which involves three participating Australian non-government organisations (CARE Australia, World Vision and Austcare).

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GLOBAL PROGRAMS

Multilateral organisations

Summary of performance SECTION

Indicator Result

75 per cent of organisations receive a rating Performance for multilateral programs met of satisfactory or higher in terms of efficiency; the 75 per cent quality performance target

significant activity outputs. in 2007–08. Significant achievements are 2 highlighted below.

Multilateral organisations are key partners for Australia and extend the reach of the aid program. By partnering with multilateral organisations, Australia is able to participate in projects on a scale and scope that would not be possible bilaterally. Channelling our aid through multilateral funds also ensures greater harmonisation across donors.

Australia provides funding to multilateral organisations in-line with the priorities of the aid program and country strategies, their focus on the Asia-Pacific region and their effective performance. The development banks are important partners in implementing the international aid and development program. Their ability to convene and influence, their independence and technical depth complement bilateral aid program grant funding.

Multilateral organisations also play a crucial role in researching, analysing and shaping international development cooperation efforts. In 2007–08, Australia actively engaged in multilateral forums to shape international thinking on development, including, for example, through our positions as executive directors at the World Bank and Asian Development Bank.

United Nations organisations

Revitalising Australia’s engagement with the United Nations is one of the three pillars of the government’s foreign policy. The United Nations is one of the most important organisations in international development and at the heart of global efforts to realise the Millennium Development Goals. For the Australian aid program, the government’s commitment to the United Nations means: • developing a stronger relationship with selected United Nations agencies which have demonstrated they can deliver effective development and humanitarian outcomes • deepening Australian engagement in the global development debate and policy-making at the United Nations and with key United Nations partners • scaling-up both core and non-core funding to those partners.

In 2007–08, Australia provided $97.6 million in core contributions to the following United Nations development and humanitarian organisations: • World Food Programme (WFP) • United Nations Children’s Fund (UNICEF) • United Nations Development Programme (UNDP) 115 AUSAID ANNUAL REPORT 2007—2008

• United Nations Population Fund (UNFPA) • United Nations Development Fund for Women (UNIFEM) • Joint United Nations Programme on HIV/AIDS (UNAIDS) • World Health Organization (WHO) • Office of the United Nations High Commissioner for Refugees (UNHCR) 2 • United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA) • United Nations and Relief Works Agency (UNRWA) • International Atomic Energy Agency (IAEA) • United Nations Office on Drugs and Crime (UNODC) SECTION • United Nations Environment Programme (UNEP) • Office of the United Nations High Commissioner for Human Rights (OHCHR) • United Nations Peacebuilding Commission.

Key areas of engagement during the year were in areas where the United Nations has specialised knowledge and expertise including health, HIV/AIDS, basic education and humanitarian assistance. Through constructive policy dialogue with the United Nations, Australia has continued to advocate for an increased focus on the development challenges in Asia and the Pacific, and better performance and coordination of development and humanitarian efforts in the region.

In partnership with the United Nations, Australia is also supporting international efforts to achieve the Millennium Development Goals. In April 2008, Prime Minister Kevin Rudd signed Australia to the global Millennium Development Goals Call to Action. The Call to Action was launched in July 2007 by the Prime Minister of the United Kingdom, the Hon Gordon Brown MP, to galvanize global action towards the goals.

Australia has continued to promote reform across the United Nations system and at agency level. A more efficient and effective United Nations is able to better deliver at country level, have the potential to make a stronger development impact and to increase the effectiveness of aid which Australia and others make through the United Nations. AusAID is the lead agency for developing and advocating Australia’s whole-of-government response to the recommendations of the High Level Panel on United Nations System-Wide Coherence, which focuses on ensuring that the United Nations operates more effectively in delivering development activities.

Key achievements in 2007–08 included: • strengthening Australia’s support for greater coherence of the United Nations system and the Delivering as One UN pilot country initiative. Australia: — provided $300 000 to the United Nations Development Group Office to strengthen its capacity in the reform process — funded the Delivering as One UN seminar in Mozambique from 21 to 23 May—the only donor to support and attend this event where pilot countries shared their experiences and exchanged lessons learned — provided $250 000 to the United Nations Development Programme to support implementation of Delivering as One UN pilot initiative in Pakistan

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• continuing strong relations with UNIFEM in the Asia-Pacific region to promote women’s leadership and address violence against women through the Trust Fund in Support of Actions to Eliminate Violence Against Women • strengthening engagement with UNICEF and the United Nations Development Programme by participating in the 2008 annual executive board meetings, including promoting United Nations reform, harmonisation and development effectiveness. SECTION

AusAID is also working closely with United Nations organisations at the country level to further the achievement of international development objectives. Examples include: • continuing to strengthen links with the United Nations Development Programme

in Solomon Islands by co-funding the Solomon Islands Parliamentary 2 Strengthening Program • strengthening links with UNICEF in several countries through a range of activities, including women’s immunisation in East Timor and funding for health, nutrition, water, environment, sanitation, basic education and child protection in Papua New Guinea.

In the Australian Government’s 2008–09 Budget, a major strengthening of Australia’s relationship with the United Nations was foreshadowed through an initiative which will see Australia provide an additional $200 million over four years in core funding to seven selected United Nations agencies.

Commonwealth organisations

In 2007–08, the aid program provided $12.6 million to Commonwealth organisations to support the peaceful, just and democratic development of its members, the majority of which are developing nations. This included support for the: • Commonwealth Fund for Technological Cooperation, to strengthen and promote human rights, public and private sector governance, economic security, health and education. Australia supported an independent multi-donor review aimed at enhancing the effectiveness of the Fund • Commonwealth Foundation, to enhance the role of civil society organisations in governance, democracy, sustainable development and cultural pursuits • Commonwealth Youth Program, to provide opportunities for young women and men to develop leadership skills and contribute to youth policy in an international arena • Commonwealth Joint Office for Small States, to help small states, particularly Pacific island states, participate more effectively at the United Nations.

Australia also provided $2 million to the five-year Australian Sports Commission managed Australian Sports Outreach Program. This initiative is targeting vulnerable groups including youth and people with disability in Africa, Pacific and Caribbean countries and delivering sports-based development programs to promote social development and community cohesion.

Australian funding also supported the Commonwealth Secretariat to undertake a respect and understanding project to develop recommendations for policies and practices that will reduce social conflict at community, national and global levels.

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Key achievements in 2007–08 included: • providing over 350 experts to assist with institution-building and training of local personnel • sending election observation teams to Papua New Guinea in August 2007, Sierra Leone in August and September 2007 and Kenya in December 2007 2

• working in Fiji, Tonga, Maldives, Kenya, Lesotho, Swaziland, Cameroon, the Gambia, Guyana, and monitoring developments in Solomon Islands, Bangladesh, Pakistan and Uganda through the Good Offices for Peace Programme • preparing the new strategic plan for 2008–2012 through the Commonwealth Secretariat. SECTION

World Bank Group

The World Bank Group is an important source of development expertise and makes a unique contribution through economic and policy research and the implementation of specialist programs. Australia continued to work closely with the bank on a range of activities with a strong Asia-Pacific focus and close attention to the development needs of small and fragile states in the region.

Australia’s membership and financial contribution to the World Bank Group provides opportunities to influence priorities and programs in our region. In 2007–08, the aid program made payments totalling $184.1 million as core contributions to the International Development Association (IDA), the bank’s concessional lending facility. Support continued for the Heavily Indebted Poor Countries Initiative, with a total contribution of $13.9 million in 2007–08.

Australia actively participated in the 15th replenishment of the IDA in 2007–08. Throughout the replenishment, Australia continued to encourage the bank to focus on the development needs of small and fragile states, strengthen IDA’s performance-based allocation system and support debt sustainability measures, particularly in those countries to have benefited from debt relief.

In recognition of the efforts made by the IDA to achieve these objectives, Australia committed $583 million to the 15th replenishment, which will be paid over nine years from 2009. This increased Australia’s commitment to 1.8 per cent, making us the 12th largest donor.

During 2007–08, Australia contributed to the development of a range of new World Bank Group policies and programs, such as the Papua New Guinea country assistance strategy, the World Bank health strategy and new funds for climate change activities. Operationally, AusAID continued to collaborate with the bank on a number of co-financed activities to complement Australia’s IDA contribution.

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World Bank

Negotiations for the 15th replenishment of the World Bank’s concessional financing arm, the International Development Association (IDA), concluded on 14 December

2007, with agreement to a record US$41.6 billion equivalent replenishment. SECTION

World Bank management and other donors warmly welcomed Australia’s pledge of $583 million, which was a 50 per cent increase in nominal terms over our contribution to the previous replenishment and one of the largest increases by

donors. This contribution increases Australia’s share of donor contributions to 1.80 per cent, up from the 1.46 per cent share Australia has maintained at IDA for 2 the last 15 years. It also means Australia has moved from being the 15th to the 12th largest IDA donor.

The 15th replenishment outcomes were consistent with Australia’s objectives in the replenishment negotiations to: • further strengthen IDA’s performance-based allocation system, reaffirming IDA’s commitment to development results • increase IDA’s focus on the special needs of small states. Specifically, the 15th replenishment will support small states through an increase to minimum country allocations and the per capita cap on allocations. As a result of these measures, IDA allocations to the Pacific are expected to rise significantly, for example, by 46 per cent for Samoa, 38 per cent for Kiribati and 28 per cent for Tonga • deliver more appropriate aid to fragile states. Agreement was reached to extend the phase-out period of exceptional allocations for eligible post-conflict and re-engaging countries. East Timor and Afghanistan are amongst the countries currently benefiting from exceptional post-conflict allocations from IDA • pay greater attention to promoting debt sustainability, including through debt management capacity building, particularly for those countries that have recently benefited from debt relief.

This increased contribution will see Australia well placed to exert even greater influence over policy outcomes when the 16th replenishment negotiations commence in 2010.

Asian Development Bank

Australia’s membership and financial contribution to the Asian Development Bank (ADB) supports Australia’s international development agenda. The Asia-Pacific focus of the bank makes it an important partner for Australia in promoting growth and stability in our region. Australia’s partnership with the ADB provides the opportunity to ensure the bank remains focused on its poverty reduction mandate and on improving development effectiveness.

Australia is the third largest donor to the Asian Development Fund (ADF), the concessional lending facility of the ADB. In 2007–08, the aid program made payments totalling $91.5 million as core contributions to the ADF.

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Australia, the ADB and the World Bank Group strengthened their commitment to working together in the Pacific through the Trilateral Cooperation Agenda. Specific actions have been identified for the three organisations to help improve the quality and effectiveness of our partnerships in the region.

AusAID continued to collaborate with the ADB on a number of co-financed activities to 2

complement Australia’s ADF contribution. For example, AusAID and ADB agreed and developed an innovative approach to co-financing in Samoa with the loan buy-down. The loan buy-down will see AusAID provide funding to ‘buy-down’ a portion of Samoa’s ADB loan if Samoa meets certain criteria in reforming their energy sector. SECTION Asian Development Fund

Negotiations for the ninth replenishment of the Asian Development Bank’s (ADB) concessional financing arm, the Asian Development Fund (ADF), concluded on 2 May 2008, with agreement to a record US$11.3 billion replenishment.

Australia maintained its position as the third largest donor to the ADF by pledging $333 million. In doing so, Australia also maintained its share at 6.49 per cent.

The ninth replenishment outcomes were consistent with Australia’s objectives in the negotiations to focus the bank on its reform efforts. To this end, ADB agreed to: • a range of reform efforts to improve human resource management. These include the introduction of more flexible recruitment arrangements to provide sufficient remuneration for difficult to fill positions and increase merit-based, transparent selection of senior management positions, including opening up positions to external applicants • assess the ADB’s independent review function, the Operations Evaluation Department, by December 2008 • develop and implement a framework to improve the measurement and effectiveness of ADB’s results, including the annual publication of a report on the ADB’s effectiveness.

In addition, donors agreed to: • cap the amount of ADF funding to Bangladesh, Pakistan and Vietnam as these countries can access substantial financing from other sources, such as the World Bank, bilateral donors and international capital markets • allocate 12 per cent of the ninth replenishment’s resources to sub-regional assistance, as ADB has a track record in delivering successful sub-regional programs • allocate 3 per cent of the ninth replenishment’s resources to technical assistance.

Progress against these reform commitments will be monitored at annual meetings of ADF donors and at the ADF mid-term review.

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Multilateral health programs

Strategic partnerships with multilateral health organisations are developed under AusAID’s international health program to complement Australia’s regional and bilateral efforts to improve health. The work of these organisations contributes directly to the achievement of

Millennium Development Goal 4 on child mortality, goal 5 on maternal health and goal 6 SECTION on HIV, malaria and other diseases.

In 2007–08, AusAID increased its core funding for multilateral health programs to $68.7 million. This amount included $45 million as part of a new three-year, $135 million commitment to the Global Fund to Fight AIDS, Tuberculosis and Malaria (the Global Fund).

This more than doubled Australia’s previous annual contribution to the Global Fund and 2 AusAID worked closely with partner countries in our region to implement Global Fund grants. AusAID also provided $1 million to the Joint United Nations Program on HIV/AIDS (UNAIDS) and $2 million to the World Health Organization to support countries to implement grants.

In 2007–08, $2.5 million in core funding was provided to UNAIDS and a further $4 million was provided to support UNAIDS programs in the Asia-Pacific.

In addition to specific support for the World Health Organization in our region, AusAID provided $10 million in core funding to support its work in the priority areas of strengthening health systems and women and children’s health. AusAID also provided $6 million in core funding to the United Nations Population Fund and $5.2 million to the GAVI Alliance (formerly the Global Alliance of Vaccines and Immunisation) to support their key roles relating to Millennium Development Goals 4 and 5.

Through its global policy work, AusAID advocated for greater emphasis on strengthening health systems as a critical part of improving the quality and coverage of health services. Australia joined the new International Health Partnership, led by the World Bank and World Health Organization, and AusAID provided $2 million to support its activities aimed at improving the harmonisation of all health development partners behind national health plans.

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Australian support for sexual and reproductive health

The United Nations Population Fund’s (UNFPA) mandate reflects Australia’s focus on Millennium Development Goal 4 (reduce child mortality) and 5 (improve maternal health), with an emphasis on family planning, reproductive health, safe motherhood 2

and young people.

UNFPA supports countries by using population data to develop policies and programs to reduce poverty, and to ensure that every pregnancy is wanted, every birth is safe, every young person is free of HIV/AIDS and every girl and woman is treated with dignity and respect. SECTION

In 2007, Australia provided $6 million in core support to UNFPA’s global program to help: • 159 developing and transition countries and territories expand access to sexual and reproductive health services and supplies • provide male condoms to 120 countries and female condoms to 50 countries, increasing distribution of female condoms to 25.9 million in 2007 • provide humanitarian support to 54 countries experiencing crisis, which included distributing 5000 reproductive emergency health kits in Darfur, Sudan, and 4700 boxes of food packages for pregnant women and nursing mothers affected by severe drought in Moldova • 140 UNFPA country offices improve access to and quality of family planning services, including increasing the choice of available contraceptives by supplying implants, injectables and female condoms • fund the campaign to end fistula, which worked throughout 44 countries in Africa, Asia and the Arab region. More than 3300 women received fistula treatment and more than 500 professionals received training to provide fistula services.

Australia provided an additional $1 million to UNFPA’s Pacific program to scale-up activities that contribute to substantial development and a better quality of life in Pacific island countries. This was achieved by integrating population, reproductive health and gender into policies, plans and strategies in-line with the Millennium Development Goals and the Programme of Action of the International Conference on Population and Development.

In addition to supporting UNFPA, Australia also provided $2.75 million to the International Planned Parenthood Federation to improve sexual and reproductive health in Asia and the Pacific.

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Multilateral environment programs

AusAID’s multilateral environment programs help multilateral agencies address key environmental issues such as climate change, loss of biological diversity, land degradation and the ecological health of international waters. Partnerships with multilateral

organisations complement Australia’s bilateral efforts to improve environmental SECTION management in Asia and the Pacific.

AusAID contributed $19.7 million in 2007–08 to the Global Environment Facility (GEF), which operates as the financial mechanism for a number of key multilateral environment agreements.

2 AusAID also provided $7.5 million to the Least Developed Countries Fund of the United Nations Framework Convention on Climate Change (UNFCCC) to help Pacific island neighbours and poorer Asian countries adapt to climate change. An additional $1.25 million also went to the UNFCCC Trust Fund for Participation to help developing countries participate in the Conference of Parties in 2007 and 2009. Developing country participation is a crucial part of building a concerted international response to climate change.

In 2007–08, AusAID contributed $800 000 to the United Nations Environment Program (a 33 per cent increase from 2006–07) and $4 million to the Montreal Protocol Multilateral Fund to help developing countries phase out ozone depleting substances.

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Emergency and humanitarian programs

Indicator Result

75 per cent of humanitarian and emergency Performance for emergency, humanitarian activities receive a quality rating of satisfactory and refugee programs met the 75 per cent or higher; significant activity outputs. performance target in 2007–08. Significant 2 achievements are highlighted below.

AusAID provided 298.4 million through its humanitarian and emergencies programs during the year.

SECTION Key achievements in 2007–08 included: • responding to 12 major emergencies in Africa, Asia and the Pacific, as well as to ongoing issues posed by global food price increases • supporting the prevention or minimisation of disaster impacts through a $15 million, four-year commitment to support multilateral and regional initiatives such as the Global Facility for Disaster Reduction and Recovery • enhancing Australia’s role in international humanitarian and emergency partnerships by chairing the APEC emergencies taskforce in Cairns (August 2007), chairing the United Nations Office for the Coordination of Humanitarian Affairs Donor Support Group for 2009–10 and being the 10th largest contributor to the Central Emergency Response Fund • continuing support to internally displaced people and refugees through AusAID’s International Refugee Fund, and supporting the Norwegian Refugee Council and United Nations Protection Capacity Building mechanism • supporting the new Global Centre for the Responsibility to Protect.

In response to the worldwide increase in food prices, in May 2008 Australia announced a $30 million contribution to the World Food Programme’s Extraordinary Emergency Appeal. An extra $77 million was also provided to the World Food Programme to deliver about 150 000 metric tonnes of food, as well as additional support for logistics and activities focused on under-nutrition. Australia continues to have a strong and healthy engagement with the World Food Programme as a key donor and as a member of its executive board.

Emergency response and disaster risk reduction activities

In 2007–08, AusAID was a key player in Australia and the international community’s response to regional emergencies. AusAID also became increasingly proactive in its disaster management approach through support to preparedness and mitigation initiatives in countries highly vulnerable to natural disasters. Australia also pledged $15 million to support key multilateral and regional organisations engaged in disaster risk reduction activities.

Key achievements of AusAID’s disaster risk reduction program during the year included working with Geoscience Australia to start a three-year natural hazard risk partnership in Indonesia, the Philippines and Papua New Guinea. These partnerships aim to enhance capacity of partner governments to assess and analyse natural hazard risk.

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AusAID’s largest emergency response was associated with Cyclone Nargis in Burma, where $25 million in humanitarian assistance was provided through partners including United Nations agencies and Australian and international non-government organisations. Some humanitarian supplies were provided directly with Australian Defence Force assistance. SECTION

Australian support for food aid

The United Nations World Food Programme provides emergency food aid to people

facing severe and life threatening hunger, often as a result of conflict or natural 2 disaster. The program aims to provide humanitarian relief with a focus on Millennium Development Goal 1, to eradicate extreme hunger and poverty. Australia has a long- standing and strong partnership with the World Food Programme, and supports its work in the Asia-Pacific and globally.

In May 2008, the program launched an extraordinary emergency appeal for additional support to meet its global food aid needs for 2008. The appeal was launched as there was a danger that the needs of the world’s hungry would not be met due to the rapid rise in global food and fuel prices over the early part of 2008.

Australia responded quickly and generously with a $30 million contribution to the appeal, $13 million to support the program’s logistics, humanitarian air service and emergency telecommunications, and $64 million for food and associated costs.

A World Food Programme ship delivering Australian funded supplies to Northern Sumatra Photo: M Anshar

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AusAID responded to a range of other emergencies including Cyclone Guba and the Oro floods in Papua New Guinea, the Sichuan earthquake in China, Cyclone Sidr in Bangladesh, flooding in southern Africa, Nepal, Pakistan, North Korea and Sri Lanka, and post-election violence in Kenya. The responses were conducted through multilateral organisations, international non-government organisations, international agencies, Australian non-government organisations and local organisations. 2

Throughout 2007–08, AusAID was active in capacity and capability development of emergency operation mechanisms and partnerships in the region. Work included supporting the National Disaster Management Offices in the Pacific and helping develop the ASEAN Regional Forum Strategic Guidance for Humanitarian Assistance and Disaster

SECTION Relief. AusAID also continued to support the United Nations Office for the Coordination of Humanitarian Affairs, Disaster Assessment and Coordination team training and development, and helped Australian non-government organisations build their capacity to respond to humanitarian emergencies. These and other activities were critical in strengthening relationships with other donors, such as through the France-Australia-New Zealand agreement.

Humanitarian activities

During 2007–08, AusAID helped displaced people, and provided support and advocacy to enhance humanitarian cluster and humanitarian coordinator systems. This led to increased accountability and coordination in international humanitarian action and supported key humanitarian research.

AusAID contributed $20 million to the Central Emergency Response Fund, an international fund administered by the United Nations, which ensures the rapid and equitable flow of humanitarian funding to emergencies. This contribution positioned Australia as the 10th largest contributor.

AusAID was nominated to chair the 2009–10 United Nations Office for the Coordination of Humanitarian Affairs Donor Support Group, which provides operational and policy guidance. The role will provide an opportunity for Australia to promote to donors, in a global setting, humanitarian issues relevant to the Asia-Pacific region. Our responsibilities begin in 2008–09 as we join the leadership ‘troika’ as incoming chair. Australia provided $4 million in core funding to the United Nations Office for the Coordination of Humanitarian Affairs.

AusAID increased its core and project-level funding to the Office of the United Nations High Commissioner for Refugees to $25 million, and disbursed $15 million under the 2008 round of the International Refugee Fund to support displaced people. This funding was provided through five key multilateral organisations (Office for the United Nations High Commissioner for Refugees, the United Nations Office for the Coordination of Humanitarian Affairs, the United Nations Development Programme, the United Nations Children’s Fund, and the International Organization for Migration) for projects in the Asia-Pacific region, Afghanistan and southern Sudan.

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Non-government organisations, volunteer and community programs

Summary of performance

Indicator Result SECTION 75 per cent of activities receive a quality Performance of non-government organisations rating of satisfactory or higher; significant and volunteer programs met the 75 per cent activity outputs. performance target in 2007–08. Significant achievements are highlighted below.

2 Non-government organisations

Internationally, non-government organisations (NGOs) are acknowledged as contributors to a more inclusive development process. In particular they promote sustainable development, human rights and improved access to services such as health and education. NGOs are also recognised for their advocacy role in promoting leadership and effective use of resources within communities and governments. In 2006–07, the level of funding to development NGOs as a proportion of Australia’s overall aid budget placed Australia as 16 of 22 donors according to the Organisation for Economic Co-operation and Development (OECD). In recognition of the need to increase our engagement in 2007–08, AusAID continued to strengthen its relationships with Australian non-government organisations with increased funding to reflect a commitment to support effective community development partnerships through the overseas aid program.

The AusAID-NGO Cooperation Program (ANCP) and cooperation agreements remain AusAID’s primary partnership mechanisms with Australian NGOs. In 2007–08, spending through NGOs increased by $23 million. Through these mechanisms, accredited Australian NGOs worked with AusAID to develop the capacity and skills of community organisations in partner countries. In 2007–08, 40 Australian NGOs received $36.9 million in ANCP funding to supplement their own activities, an increase of $10 million. In the same period, 21 Australian NGOs were involved in 11 multi-year AusAID cooperation agreements aligned with specified strategic objectives (including emergency and humanitarian assistance). Funding through cooperation agreements in 2007–08 was in excess of $45 million, an increase of $13 million.

AusAID continued to work closely with the peak body for Australian development NGOs, the Australian Council for International Development (ACFID), and developed closer working relationship with ACFID’s development practices committee. Increased support was also provided for ACFID’s workshop and seminar training program, which aims to improve the sector’s quality and professionalism.

AusAID also worked with Australian NGOs on a range of key development and performance issues during the year, including cluster evaluations of ANCP activities in the Pacific and Philippines and conferences on civil society engagement. Mechanisms for consultation between AusAID and the NGO community continue to evolve reflecting the commitment to partnership and joint learning. In 2007–08, executive level discussions, specific purpose seminars and regular committee for development cooperation meetings supported best practice within the sector.

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Social empowerment and education in Fiji: The AusAID-NGO Cooperation Program—supporting community capacity building and development best practice

The Social Empowerment and Education Program is run by Fiji’s Ecumenical Centre 2 for Research, Education and Advocacy, managed by Oxfam Australia, and supported by AusAID. It encourages Indigenous Fijians to participate in social and democratic development processes at the local, provincial and national level.

The program is targeted at local projects relevant to the needs of 10 communities

SECTION on Vitu Levu, Fiji. It incorporates assistance for land and leadership issues in Fiji, by training and mentoring community facilitators from each village, who then support social empowerment and education within their own communities. These facilitators encourage involvement and inclusion from marginalised groups, such as women and youth, in a culturally sensitive approach to dealing with specific community issues.

A cluster evaluation undertaken in 2007–08 found that empowerment processes in the program lead to practical, sustainable change within communities in supporting their own development needs. The evaluation also found that mutual learning between partner organisations on social issues across communities provided support for local community leaders.

Young Fijians taking part in a peace-building and development program run by Fiji’s Ecumenical Centre for Research, Education and Advocacy and managed by Oxfam Photo: Waisale W. Ramoce Ecumenical Centre for Research, Education and Advocacy

128 PERFORMANCE ADMINISTERED PROGRAMS

Kate Nelson: Speaking with hands—volunteers working with disability

Kate Nelson, a volunteer with Australian Volunteers International, has spent the past three years working with the Fiji Association of the Deaf. In partnership

with local research assistants, Apenisa Matairavula and Saminsoni Weleilakeba, SECTION Kate has helped record and document over 2000 signs for publication in the first Fijian sign language dictionary. Her work has also involved assisting the Fijian Association of the Deaf acquire equipment, train staff and establish an interpreters’ course for current and future teachers to incorporate into educational programs.

Kate Nelson (left) with research assistants Apenisa Matairavula (centre) and Saminsoni Weleilakeba (right) Photo: Rob Maccoll

Volunteers

Australia’s volunteer program supports people-to-people links and helps alleviate poverty through service delivery, and skills development and transfer across a range of professional areas. In 2007–08, $31.7 million was provided to place volunteers overseas, including $15 million for young Australians to volunteer through the Australian Youth Ambassadors for Development (AYAD) program. During the year, 820 Australians, including 398 youth ambassadors, were placed as volunteers in 28 countries in the Middle East, Africa and the Asia-Pacific.

To support the cross fertilisation of ideas among volunteers overseas and a closer alignment to aid program priorities, AusAID facilitated volunteer workshops in Port Moresby and Cambodia. As part of AusAID’s commitment to evidence-based policy development, research was also commissioned into how the volunteer program is supporting people with disability in the Pacific, and how Indigenous Australians are participating in overseas volunteering, including barriers to participation in the Australian volunteer program.

129 AUSAID ANNUAL REPORT 2007—2008

Internationally and in Australia, volunteer agencies are increasing their focus on how to measure the development effectiveness of their programs. In 2007–08, AusAID facilitated a best practice workshop on volunteers and aid effectiveness, which drew on international best practice and included presentations by United Nations volunteers and a leading Canadian volunteer agency on their approaches to assessing outcomes of the volunteer contribution in their programs. 2

Penny Clark: Youth ambassadors—working on water in Vietnam

As an Australian Youth Ambassador for Development, Penny Clark volunteered to

SECTION work as a construction assistant on the Three Delta Towns water supply and sanitation project in Vietnam. Jointly supported by the Australian and Vietnamese governments, the project is building large-scale facilities and infrastructure to manage water and sanitation systems in three cities. It is developing the skills and capacity of local people to build and maintain lasting water supply and sanitation infrastructure.

Penny works about 280 kilometres south of Ho Chi Minh City in Bac Lieu. Before she started the project, only one third of the town’s population had access to piped water. Penny has helped identify infrastructure upgrades to provide a reliable water supply and improve sanitation and drainage in the city. Through this process, she has worked with local partners to identify quality and safety issues, and improve occupational health and safety practices on the town’s construction sites.

Youth ambassador Penny Clark with a construction worker at the Three Delta Towns water supply and sanitation project in Vietnam Photo: Bart Verwey

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Information, education and communication programs

Summary of performance

Indicator Result SECTION Effective programs that ensure the aid program The communication, education and remains identifiably Australian, supports the information program effectively emphasised government’s communications on the aid the identity of Australia’s development program with the parliament and community, assistance and supported the government’s and enhance community understanding of the aid communications with relevant aid

aid program. program stakeholders. 2 Significant activity outputs:

• media releases in Australia and in AusAID prepared 110 media releases partner countries in Australia and 170 media releases in partner countries.

• speeches presented in Australia and in AusAID assisted with or presented partner countries 66 speeches in Australia and 120 speeches in partner countries.

• community engagement AusAID engaged with the Australian community through multiple activities with a combined audience of close to 430 000 people across Australia and the Asia-Pacific region.

• number of teachers participating in More than 16 000 primary, secondary and development education training student teachers participated in global education training.

• number of curriculum documents purchased More than 40 000 curriculum documents were by target groups distributed during the year.

• number of visits to, and number of There were 40 electronic publications placed electronic publications placed on, the global on the global education website which received education website 386 559 visits.

• average monthly number of website visits. The program achieved growth in visits to the AusAID website with an average of 200 000 visits a month.

AusAID’s information, education and communication programs aim to increase public awareness of, and support for, Australia’s overseas development program among rural, regional and metropolitan audiences. In 2007–08, AusAID placed particular emphasis on extending the reach of communication activities through a major touring photographic exhibition, high quality publications and associated media and online activities. The photographic exhibition was Australia’s response to humanitarian crises, and highlighted the role of partnerships between governments and non-government organisations in delivering emergency relief.

Communication activities delivered results in five key public information areas: media, engagement with civil society, global education, internet and publications.

131 AUSAID ANNUAL REPORT 2007—2008

Media

Throughout 2007–08, AusAID supported the Minister and Parliamentary Secretaries in communicating aid program initiatives to the Australian community. It also delivered information to beneficiaries of the aid program in partner countries.

2 In Australia, the agency issued 110 media releases and assisted with 66 speeches. In

partner countries, AusAID issued more than 180 media releases, and assisted with or presented more than 140 speeches.

AusAID provided timely and effective public affairs and emergency support following the China earthquake, Burma cyclone, Indonesian landslides and earthquake, and the Papua SECTION New Guinea cyclone and flooding. Ongoing public affairs support was also given in the wake of the world food crisis.

Through its Canberra-based and overseas officers, AusAID provided effective, proactive and reactive media services in Australia and overseas. Proactive activities included promoting a range of new and existing AusAID policies to ensure transparency, accountability and awareness of the Australian Government’s approach to aid.

In Indonesia, Prime Minister Kevin Rudd and the President of Indonesia Susilo Bambang Yudhoyono launched a new strengthened five-year development assistance partnership, outlined in the Australia Indonesia Partnership Country Strategy 2008–2013. During a visit to Australia’s reconstruction projects in the province Mr Rudd also announced an ongoing commitment to help Aceh build a prosperous and peaceful future. The visit in June 2008 received significant coverage in the Australian, Indonesian and international media.

During the year, AusAID helped build or expand a further 540 junior secondary schools, bringing the total number of schools built through the program to about 900. The official openings of the schools were marked with community celebrations and ceremonies, many of which included Australian Government representatives including the Australian Ambassador to Indonesia Bill Farmer and Prime Minister Kevin Rudd.

AusAID promoted a range of activities including the launch of the Pacific Economic Survey 2008 and Making land work, a program to support governments in the region to improve their land systems. Other core initiatives promoted on behalf of the agency included the role and importance of volunteering in development, support programs in our region to contain and combat HIV/AIDS, and the Pacific Malaria Initiative, which aims to eradicate malaria in the Pacific.

In Papua New Guinea, Tok Taim (Tok Pisin: It’s time to talk), a quarterly newsletter highlighting current projects, was established in 2007 to communicate aid program outcomes and achievements. Tok Taim has proven to be popular with local audiences making it an effective vehicle to discuss the program aims and areas of focus.

With rugby league Papua New Guinea’s national sport, Australian sporting ambassadors have been used widely to help reduce the stigma of those living with HIV and AIDS. Mal Meninga and Brad Fittler led their team mates through villages where voluntary counselling and testing centres were being introduced, lending their support to the message ‘People with HIV are just like you and me’.

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AusAID facilitated media visits to aid projects across the region including a visit by senior Australian editors to Indonesia and a visit by The Australian Women’s Weekly to profile female aid workers in East Timor, Indonesia and Solomon Islands.

Ongoing support for AusAID’s touring photographic exhibition Relief in sight—Australia’s

international disaster response in pictures was provided to engage audiences, highlight SECTION the important role emergency and humanitarian aid plays in our region, and show how the Australian Government assists with this.

AusAID also worked to provide accurate, timely, and helpful information about all facets of Australia’s aid program to facilitate public discussion, awareness and support for

Australian aid initiatives. 2

Communications for community and stakeholder engagement

AusAID engaged with the Australian community and stakeholders through multiple communications activities, with a combined audience of close to 430 000 across Australia and the Asia-Pacific.

Relief in sight continued its national tour visiting over 30 metropolitan and regional locations across the Northern Territory, Western Australia, South Australia, Victoria and Tasmania. The exhibition reached an estimated audience of 334 000 people, the website received 72 460 hits, and articles in the media reached an estimated audience of over 2 500 000 between July 2007 and June 2008. A number of Relief in sight events were hosted by AusAID, including a reception in Melbourne with the Parliamentary Secretary for International Development Assistance, a display at the Royal Adelaide Show, and a public forum in Adelaide, Relief in sight…how well prepared is Australia to respond to a crisis in our region? co-presented with World Vision Australia and the Hawke Centre through the International Alerts series.

Exhibition manager Julie Goode talks to visitors at Paspaley Shopping Centre in Broome, WA in October 2007 as Relief in sight—Australia’s international disaster response in pictures continued its national tour covering a total of four states and one territory in 2007—08 Photo: Simon Goode

133 AUSAID ANNUAL REPORT 2007—2008

In 2007–08, AusAID also hosted or managed the: • APEC Taskforce for Emergency Preparedness Seminar in Cairns on enhancing emergency preparedness in the region. This was attended by emergency management heads within APEC-member economies • Third Ministerial meeting on HIV/AIDS in Sydney, focusing on engaging the business

2 sector in the fight against HIV/AIDS, and attended by the former Minister for Foreign

Affairs, other members of parliament and representatives from the business sector • Windows on the World volunteering display, highlighting opportunities for volunteering overseas and exhibited at Adelaide’s annual world music and dance festival, WOMADelaide, the National Folk Festival in Canberra and the Adventure Travel Show

SECTION in Melbourne • Volunteers and Aid Effectiveness Forum in Canberra, which highlighted the contribution of volunteers to effective aid delivery and shared the knowledge and skills of the participants who included representatives from volunteer agencies • landmines display in Melbourne and Canberra, which demonstrated the link between landmines and increased poverty to visitors at the Royal Melbourne Show, and to non-government organisation partners, diplomats, members of parliament and the public through a documentary screening at Parliament House.

In 2007–08, AusAID sponsored, supported and participated in the: • Afghanistan photographic exhibition at the Department of Foreign Affairs and Trade in Canberra, and in Australian embassies internationally, which highlighted development issues and progress in Afghanistan • United Nations Development Fund for Women’s International Women’s Day events across Australia, which raised awareness of gender issues • Survivors photographic exhibition in Canberra and across New South Wales, which was presented with the Red Cross and explored the stories of Cambodians affected by landmines. The exhibition also highlighted the partnership between AusAID and the Red Cross • photographic exhibition The Shack installed at Parliament House in Canberra, which was presented in cooperation with RESULTS Australia, and raised awareness of HIV/AIDS-related tuberculosis • International AIDS Society Conference in Sydney, which presented information on HIV pathogenesis, treatment and prevention. AusAID exhibited at the event to raise awareness of Australia’s HIV/AIDS strategy to delegates including health practitioners, scientists and development experts. AusAID also exhibited at ICAAP 8 in Colombo, Sri Lanka, a regional conference focusing on HIV/AIDS in Asia and the Pacific • ATSE Crawford Fund annual conference at Parliament House, Canberra, where topics such as biofuels, energy and agriculture were presented to attendees from government departments, research and non-government organisations • Ninth Annual Global Development Conference in Brisbane, which presented to academics, policy-makers and researchers from developing countries issues such as security for development and confronting threats to survival and safety

134 PERFORMANCE ADMINISTERED PROGRAMS

• UNICEF Junior APEC Forum at the New South Wales Parliament House, which helped young Australians express their concerns about climate change, trade and development to APEC leaders • Lowy Institute New Voices Conference 2007 in Sydney, which provided a platform for early-career people from a variety of backgrounds to express their insights and ideas on important issues of international policy SECTION • Burnet Institute World AIDS Day Concert in Melbourne, which raised awareness of HIV/AIDS issues and the work of AusAID.

Global education 2 In 2007–08, AusAID helped train more than 16 000 primary, secondary and student teachers across Australia in development education. A greater emphasis has been placed on developing a global perspective across individual school curriculums.

Curriculum materials were developed and more than 40 000 curriculum documents were distributed. The global education website was also popular with 386 559 visits during the year. A total of 40 electronic publications were added to the website.

AusAID website

The AusAID website attracted around 3.5 million visitors, an increase on 2006–07. The site continued to deliver an extensive news service on the home page, easier access to country information and a navigation structure that provides fast and easy access to all areas of the site.

New areas included a website for the Office of Development Effectiveness and a move towards using centralised Australian Government online collaboration services.

AusAID responded to around 4 000 public requests for information through the website. Further information is provided in appendix F.

Publications

AusAID’s flagship magazine, Focus, is published three times a year. Its highly pictorial format is designed to capture community interest in Australia’s overseas aid program. Articles and images cover a broad scope of activities, mainly in the Asia-Pacific region, that help to reduce poverty and promote sustainable development. Focus presents the human face of development assistance.

Copies are distributed free through a subscription database, mainly to the Australian public. Other groups include government departments, overseas posts, doctor and dentist waiting-rooms, schools and universities, non-government organisations and businesses. Further copies are distributed on request (for example, as one-off special orders) or through events arranged by AusAID’s communications section. The current print run is 60 000.

Visitors to AusAID’s website can also view Focus and download individual articles as PDF or Word files. Further details of AusAID publications can be found at appendix E.

135 AUSAID ANNUAL REPORT 2007—2008

Cross agency programs

Fragile states

With an estimated 50 per cent of Australia’s official development assistance directed to fragile states10, AusAID has continued its strong focus on improving development

2 effectiveness in countries and regions where capacity to deliver services is weak, and the

risk of conflict is high. In 2007–08, AusAID, through targeted research and analysis, and engagement with other donors and international organisations, identified key lessons and good practice approaches to improve Australia’s whole-of-government support to partner countries. A particular focus was on service delivery, government and civil society capacity

SECTION development, peace-building and security sector reform.

The principles contained within the Paris Declaration on Aid Effectiveness, and the OECD Development Assistance Committee (DAC) principles of good international engagement in fragile states and situations, have informed AusAID’s country and regional strategies and programs. Further work is needed by Australia and the international community to develop the necessary strategies and tools to support fragile states and their progress towards the Millennium Development Goals. This includes practical guidance on state-building, the use of a targeted range of capacity development measures, donor harmonisation and alignment with partner government systems.

Key achievements in 2007–08 included: • collaborating with the World Bank and Professor Francis Fukuyama of the John Hopkins University in the United States to undertake political-economy analysis of Papua New Guinea and Solomon Islands, and identify new ideas for local leadership and state- building support • commissioning cutting-edge research by the University of Queensland to explore approaches to state-building in East Timor and the Pacific that promote a blend of modern and customary institutions in partner countries • organising and co-chairing with France and DAC an international forum to share lessons and good practice on whole-of-government approaches to public financial management in fragile states • providing specialised training for Australian officials and their counterparts to facilitate the transfer of capacity development skills and knowledge in the workplace through the Making a Difference program which, to date, has been implemented in Papua New Guinea, Solomon Islands and Vanuatu • supporting the Asian Development Bank with partner country-led research to provide lessons from capacity development programs in the Pacific and East Timor. Policy dialogue between Australia, the bank and other donors to identify strategies and measures to improve the bank’s effectiveness in fragile states will continue in 2008–09 • supporting a new United Nations multi-donor trust fund to strengthen the rule of law in conflict and post-conflict countries with a focus on improving women’s access to justice and security

10 ARDE 2007.

136 PERFORMANCE ADMINISTERED PROGRAMS

• strengthening Australian inter-agency policy dialogue on fragile states issues, including security sector reform, capacity development, and civil-military coordination and planning.

Mine action SECTION In 2007–08, Australia provided $19.9 million for mine action activities, including de-mining, survivor assistance, mine risk education, and Mine Ban Convention advocacy activities. AusAID’s Mine Action Strategy, through which $75 million has been committed from 2005 to 2010, has now provided more than $53.5 million since 2005. Programs under the strategy aim to reduce human suffering and socio-economic harm resulting from 2 landmines and other explosive remnants of war.

One important activity was survivor assistance, which addressed the needs of victims and their communities by providing a range of disability support services including medical, rehabilitation, psycho-social and socio-economic assistance. Other mine action activities (including demining) opened rural areas for development, prevented further casualties, and promoted dialogue on whole-of-government approaches to survivor assistance and the development of national plans.

Key achievements in 2007–08 included: • providing $19.8 million for mine risk education, mine clearance and survivor assistance activities in Cambodia, Laos, Vietnam, Sri Lanka, Nepal, Lebanon, Afghanistan and Iraq • supporting international organisations such as the Geneva International Centre for Humanitarian Demining to maintain knowledge of best practice in mine action and the impact mine action has on development, and to support production of key publications such as the Landmine monitor • working with Canada and Indonesia to support a workshop on the Convention for South-East Asian countries in Bali in February 2008 and contributing to an ASEAN workshop in Kuala Lumpur in March 2008.

Human rights

Development and human rights are interdependent and mutually reinforcing. The aid program, through the government-financed Human Rights Fund, supports human rights through a range of initiatives including by providing core funding to the United Nations Office of the High Commissioner for Human Rights and the Human Rights Small Grants Scheme. The fund’s budget increased to $3.5 million in 2007–08, allowing it to contribute further to sustainable development through practical projects that promote awareness of, and increase access to, human rights in economic, social, cultural, civil and political fields.

137 AUSAID ANNUAL REPORT 2007—2008

Child protection policy

In March 2008, AusAID introduced a comprehensive child protection policy, which covers all aspects of the agency’s operations and applies to AusAID staff, contractors and non-government organisations funded by the agency. The policy was 2

developed to provide a clear framework for managing and reducing risks of child abuse by those engaged in delivering Australian aid program activities.

It is based on four guiding principles, including zero tolerance of child abuse, recognition of children’s interests, a risk management approach to child protection

SECTION and sharing responsibility for child protection.

An innovative aspect of the policy is the inclusion of mandatory child protection compliance standards for contractors and non-government organisations. For instance, contracting firms and non-government organisations must have their own child protection policies and must obtain criminal record checks for personnel who work with children.

Other key elements include a new AusAID position of child protection officer, enhanced codes of conduct for AusAID officials, updated risk management guidance for designing development activities, strengthened recruitment and screening processes, and mandatory provision of training on child protection matters to AusAID officials posted overseas.

Young school children from South Tarawa, Kiribati Photo: Lorrie Graham

138 PERFORMANCE ADMINISTERED PROGRAMS

Key achievements in 2007–08 included: • increasing awareness of human rights by supporting 17 activities primarily in the Asia-Pacific region. These included educating rural migrant workers in Indonesia of their labour rights though the use of traditional theatre, assisting communities in Makira and the western provinces of Solomon Islands to engage with logging companies to address the problem of commercial sexual exploitation of children, and SECTION strengthening the capacity of 300 media personnel in Sri Lanka to provide reporting on human rights abuses • strengthening international and regional human rights capacity by providing funding of $1.2 million to the United Nations Office of the High Commissioner for Human

Rights. Australia’s funding supported the office’s core work, the National Institutions 2 Unit’s activities in the Asia-Pacific, the office’s regional office for the Pacific, and the campaign to mark the 60th anniversary of the Universal Declaration of Human Rights. In addition, through the Australian Youth Ambassadors for Development Program, Australia placed a volunteer lawyer with the Office of the High Commissioner for Human Rights in Suva, Fiji • providing core funding of $1.8 million over three years to the Asia-Pacific Forum of National Human Rights Institutions, which advises governments and civil society on how to establish national human rights institutions, facilitates information exchange, and provides technical support and training to member institutions in the Asia-Pacific region • responding to emerging priority human rights issues. For example, a package of assistance was provided to the Philippines to address the issue of extra-judicial killings—the murder of political, trade union or social figures, or dissidents, by state authorities such as the armed forces or police, or by criminal groups.

These and other activities under the Human Rights Fund are in addition to human rights activities delivered through AusAID’s bilateral, regional and non-government programs.

Demand for better governance

Building demand for better governance is a priority for Australia’s international development assistance program. A total of $41 million has been committed from 2007–2009 for innovative approaches to help citizens participate in decisions that affect their lives, and to promote the accountability of government and other institutions. New programs were undertaken during the year at the country, regional and global level.

Key achievements in 2007–08 included: • commencing the Pacific Leadership Program to work with current and emerging leaders to promote effective Pacific approaches to leadership that support good governance • improving citizens’ access to information on, and engagement with, the operations of government. This is being undertaken through targeted country programs, including the Timor-Leste Media and Communications Program, which is providing professional development to journalists, and helping the International Center for Journalism increase political awareness of necessary legislative reform, leading to the introduction of a new media law to parliament

139 AUSAID ANNUAL REPORT 2007—2008

• strengthening the capacity of civil society organisations to engage with government, and supporting community driven development through activities such as the Papua New Guinea Church Partnership Program, and the Indonesia Australia Community Development and Civil Society Strengthening Scheme • establishing an extensive and complex range of partnerships as part of the Building demand for better governance initiative, including with national governments, 2 multilateral organisations, international and local non-government and civil society organisations. Flexibility and close management of new activities have ensured that early objectives have been met.

Australian Scholarships in AusAID SECTION

Australian Scholarships is a $1.4 billion initiative to promote sustainable development and excellence in education in the Asia-Pacific region. AusAID offered more than 1950 scholarships and fellowships in 2008 through Australian Development Scholarships (ADS), Australian Leadership Awards—Scholarships (ALAS) and Australian Leadership Awards—Fellowships (ALAF).

AusAID promotes a range of scholarships and fellowships through sub-programs of ADS or ALAS. These initiatives represent a significant component of Australia’s overseas aid program. The long-term impact is realised through institutional strengthening and support for outstanding individuals to drive and influence economic growth and human resource development across the region. Scholarships are recognised as an effective means of furthering both development and foreign policy objectives and building essential people-to- people links between Australia and our Asia-Pacific neighbours.

Australian Development Scholarships (ADS) About 2500 students11 from 37 countries were studying at 50 Australian post-secondary institutions under the ADS program during the year, with 85 per cent enrolled at the postgraduate level. During 2007–08, 1100 ADS were awarded, with gender balance achieved in selection across most countries. In-line with emerging priorities in the region, the major fields of study are governance (30 per cent), infrastructure (12 per cent) and education (10 per cent). In the past year, around 1000 ADS scholars successfully completed their studies and returned home to contribute to the long-term development needs of their countries.

Australian Leadership Awards—Scholarships (ALAS) Significant progress has been made in implementing ALAS since their introduction in 2006.

11 Includes the following programs: Australian Development Scholarships; Australia-Pakistan Scholarships; ACIAR John Allwright Fellowships; Carnegie Mellon-AusAID Scholarships; University of Wollongong Centre for Transnational Crime Prevention Scholarships.

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ALAS are regionally competitive and maintain flexibility to respond to regional priorities. For the 2008 academic year: • over 60 per cent of the 172 awards were allocated to the priority areas of climate change, disease pandemics, international trade and security • scholarships were awarded for 86 Masters and 86 PhD programs, across a total of SECTION 26 countries • scholars found placements across 31 Australian universities.

In October 2007, Curtin University of Technology was selected to deliver the Leadership Development Program component. The Leadership Development Conference was hosted in Canberra in March 2008, with workshop components held in May 2008 for the 2007 2 cohort and July for the 2008 cohort.

The inaugural Allison Sudradjat Award was offered to the top four Indonesian and the top two Papua New Guinean ALAS recipients for the 2008 academic year. As well as the entitlements they receive under the leadership awards, these scholars receive additional benefits such as attachments with Australian Government departments, education and research institutions. They are a small but enduring tribute to a remarkable humanitarian and AusAID senior officer Allison Sudradjat, who died in the tragic crash of Garuda flight 200 in Yogyakarta on Wednesday 7 March 2007.

The current four Allison Sudradjat Award scholars meeting with the Minister for Foreign Affairs, Stephen Smith, and Parliamentary Secretary for International Development Assistance, Bob McMullan, during the Leadership Development Conference in Canberra in March 2008. (From Left) Uke Kombra (Papua New Guinea), Shirley Gaiyer-Kore (Papua New Guinea), Najwa Shihab (Indonesia), Stephen Smith, Jeanne Rini Poespoprodjo (Indonesia) and Bob McMullan Photo: David Foote, Auspic

141 AUSAID ANNUAL REPORT 2007—2008

Australian Leadership Awards—Fellowships (ALAF) ALAF are for current and future leaders from our region to undertake short-term leadership and professional development programs in Australia hosted by Australian organisations. The organisations include Australian, state and territory government departments, universities, not-for-profit organisations, private businesses, and research and industry

2 bodies. ALAF rounds now occur twice a year. In round two, 21 fellowship programs were approved for 18 Australian organisations to host 173 fellows from 13 countries. In round three, 55 programs were approved for 38 organisations to host 522 fellows from 25 countries. The fellowships are addressing regional development themes of education, pandemics, governance, climate change, health, international trade, and security.

SECTION Australian host organisations for Australian Leadership Awards—Fellowships 2007–08:

Administrative Appeals Tribunal Department of Foreign Affairs Queensland Department of and Trade Education, Training and the Arts

AIDS Council of New Department of Immigration Queensland Department of South Wales and Citizenship Natural Resources and Water

Asia Pacific Journalism Centre Flinders University Queensland University of Technology

Attorney-General’s Department Griffith University RGH Pharmacy Consulting Services

Australian Catholic University Hoc Mai, The Australia Southern Cross University Vietnam Medical Foundation

Australian Council for International Centre Supreme Court of Queensland Educational Research for Excellence in Water Resources Management

Australian Customs Service— International Help Telethon Institute for Child Border Protection Command Fund Australia Health Research

Australian Institute of International Needs Australia University of Melbourne International Affairs

Australian International Landgate, The Western University of New England Health Institute (University Australian Land of Melbourne) Information Authority

Australian National University Macfarlane Burnet Institute University of New South Wales of Medical Research and Public Health

Australian Universities Monash University— University of Queensland Quality Agency Melbourne APEC Finance Centre

Bayside Health—The Alfred Moreland City Council University of Sydney

Biosecurity Centre Operations National Centre for Vocational University of Tasmania Education Research

Chisholm Institute of TAFE National Library of Australia University of Technology Sydney

CPA Australia People with Disability Australia University of Western Australia

Curtin University of Technology Planning Institute of Australia Victoria University

Yellow Edge 142 PERFORMANCE ADMINISTERED PROGRAMS

Australian Regional Development Scholarships Australian Regional Development Scholarships fund tertiary students from 15 Pacific island countries to study at educational institutions in Fiji, New Caledonia, Papua New Guinea, Samoa, Solomon Islands and Vanuatu. They are a cost-effective way for students to gain knowledge and skills in priority training areas within the region. Since 1990, scholarships have supported some 3000 awardees from 15 Pacific islands SECTION and contributed several million dollars each year to local economies and educational institutions. In 2007–08, there were about 600 scholarships.

As well as encouraging the development of regional networks, the scholarships support

Pacific institutions to bolster their capacity and provide high quality student services 2 through contractual arrangements for student management. They also addresses the immediate human resource development priorities of partner countries and, over the long-term, support the development of a skilled workforce. Many previous scholarship recipients have attained senior positions in the public and private sectors.

In 2007–08, scholarships were awarded for technical/vocational certificates and diplomas, undergraduate and postgraduate degrees, taught by distance or full-time on campus. Courses covered areas prioritised by partner governments, and included governance and public administration, health, education and training, law, agriculture, and engineering.

AusAID Development Research Program

Development research provides an important evidence base to inform development policy and programming. AusAID’s research program has expanded over the last year in-line with government commitments for scaling-up Australian development assistance. AusAID’s Development Research Strategy 2008–2010, launched in January 2008 by the Parliamentary Secretary for International Development Assistance, outlines the enhanced use of research for policy, planning and development effectiveness, increased research funding, new governance arrangements for research, further leveraging of partnerships, and a focus on capacity building for conducting and using research.

Spending on research through the AusAID development research program increased to $6.9 million in 2007–08. Much of this investment leverages important partnerships with international research programs in organisations such as the Centre for Global Development and the World Bank. Investment in development research across AusAID country program, thematic and corporate groups, has increased by more than 50 per cent in the past year, with the largest increases seen in infrastructure, environment, health and Millennium Development Goals related research.

The inaugural round of AusAID’s competitive research grants scheme, the Australian Development Research Awards, was successfully implemented with high quality Australian and international research funded. Over 500 applications were received and $8.8 million was awarded to 27 projects including research on HIV prevalence in the upper Mekong, improving the financial literacy of small business holders in the Philippines, providing incentives to reduce deforestation in Papua New Guinea and Indonesia, and strengthening mortality reporting in the Pacific.

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Thematic knowledge management in AusAID

Sharing knowledge across AusAID is critical for better development outcomes. Networks were formalised and grouped into 13 themes in August 2007 as the principal mechanism for managing knowledge across the agency. The themes are 2

crucial for professional development, promoting aid quality, ensuring consistency of policy and for sharing ideas and lessons across a particular sector.

AusAID’s thematic networks cover the following themes: economics, civil society, fragile states and peace building, gender, governance and anti-corruption, law and

SECTION justice, environment and water, infrastructure, rural development, performance and quality, education, health, and HIV. Networks bring together all staff working on thematic issues in AusAID, whether based in Canberra or overseas. Each network has a head and a manager who lead planning for their network’s future directions. All the heads and managers meet regularly to ensure lessons are also shared across the networks. Network membership is mandatory for all AusAID staff working in the relevant thematic areas. Current total membership is over 1900, with many staff joining more than one network.

Thematic networks operate by linking staff across programs through a range of activities aimed at sharing international best practice in development. Activities include hosting annual conferences, presenting regular meetings, workshops and seminars, finding experts and information, providing training opportunities, participating in reviews, and distributing information through shared sites, newsletters and email lists.

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OUTPUT 1.1—POLICY

Summary of performance

Indicator Result SECTION Ministerial/Parliamentary Secretary satisfaction. General satisfaction.

Number of submissions or briefs, questions AusAID provided 364 submissions on notice, possible parliamentary questions, and 284 briefs to the Minister and submissions to parliamentary committees, Parliamentary Secretaries.

correspondence, press releases, speeches,

AusAID responded to 10 parliamentary 2 number of program strategies prepared questions on notice and eight questions in or reviewed. writing. A further 90 questions were answered in writing during the course of two Senate Estimates inquiries. AusAID prepared no written submissions to parliamentary inquiries. On average, AusAID prepared 20 responses to possible parliamentary questions for each parliamentary sitting period. 1353 items of ministerial correspondence were prepared. AusAID prepared two new country and regional strategies, and reviewed eight existing strategies. Within programs, a number of major sector strategies were prepared.

Providing policy support and advice to the Minister for Foreign Affairs and the Parliamentary Secretary for International Development Assistance is a key function of AusAID. Our policy agenda is focused on the stated priorities of the Australian Government, including an explicit emphasis on reaching the targets set by the Millennium Development Goals. The announcement of the government’s new Pacific Partnerships for Development, culminating in the Port Moresby Declaration, articulated a new framework for Australia’s engagement with Pacific island nations and a joint commitment to achieving shared goals. These new policy priorities were reflected in the government’s 2008–09 Budget, which lay the foundations for an increase of official development assistance to 0.5 percent of gross national income by 2015.

Country strategies provide the overall policy and implementation framework for Australia’s aid program. During 2007–08, the Greater Mekong Sub-region 2007–2011 and the Australia-Indonesia Partnership Country Strategy 2008–2013 were released. AusAID conducted performance reviews of several country strategies and the results of these are informing the development of new country strategies. The Office of Development Effectiveness is working to improve the function of country strategies and link them to other business processes.

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Ministerial/Parliamentary Secretary satisfaction

During the last reporting period, AusAID served the Hon Alexander Downer MP as the former Minister for Foreign Affairs, and the Hon Stephen Smith MP as the current Minister for Foreign Affairs. AusAID also served the then Parliamentary Secretary for Foreign Affairs, the Hon Greg Hunt MP, and the current Parliamentary Secretary for 2

International Development Assistance, the Hon Bob McMullan MP. AusAID also provided policy support and advice to the Parliamentary Secretary for Pacific Island Affairs, the Hon Duncan Kerr MP.

The Minister and Parliamentary Secretaries expressed general satisfaction with the agency’s performance throughout the year in meetings with AusAID executive and staff, SECTION and in comments on written submissions.

Since commencing their roles in November 2007, Mr Smith and Mr McMullan have been pleased to see first hand the work of AusAID in partner countries, and impressed with the quality of work taking place in the field.

The Minister and Parliamentary Secretaries commented favourably on AusAID’s efforts to develop the government’s 2008–09 Budget delivered in May 2008. The Budget has laid the foundation for implementing the government’s election commitment to increase Australia’s official development assistance to 0.5 per cent of gross national income a year by 2015, and is also encouraging progress towards the Millennium Development Goals, a priority set down by the Prime Minister.

The Minister and Parliamentary Secretaries thanked the Agency for its progress on implementing major new initiatives including the significant new disability strategy, and the $300 million water supply and sanitation program. Mr McMullan also noted the importance of the first Annual Review of Development Effectiveness.

In addition to providing policy advice and support to the former and current Minister and Parliamentary Secretaries, the agency responded to correspondence over the year on a range of issues including family planning guidelines in the aid program, the environment and climate change, health issues in the region, including child and maternal health and debt-for-health swaps, Australia’s responses to humanitarian and emergency crises such as Zimbabwe and Sudan, calls to meet the Millennium Development Goals and Make Poverty History targets, and the overall level of funding for the aid budget.

A total of 102 staff attended various training courses in ministerial, parliamentary services and possible parliamentary questions. Quick guides relating to a number of ministerial and parliamentary services functions were also developed and disseminated for ongoing training and development of staff in Canberra and overseas.

Representation at international forums and involvement with other government departments

The Minister for Foreign Affairs and Parliamentary Secretary for International Development Assistance attended a number of significant meetings with a wide range of partners during the year. These have included Mr Smith’s participation at the United Nations High Level

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Conference on World Food Security and the Afghanistan Donors Conference in June 2008, as well as Mr McMullan’s attendance at the 2008 Tidewater Meeting of Donors, and the ASEAN/UN Donor Meeting for Burma in May 2008.

The Director General attended a range of high-level meetings during the year, including

the OECD Development Assistance Committee High Level Meeting and the first annual SECTION development dialogue with the UK Department for International Development.

Other significant meetings where AusAID was represented included the World Bank and Asian Development Bank annual meetings, APEC Senior Officials meeting, the 8th International Congress on AIDS in the Asia-Pacific, the Pacific Islands Forum, the International Symposium on Friends of the Global Fund, the Afghanistan Donors’ 2 Conference, the Review of the International Compact with Iraq, and the Standing Committee to the Mine Ban Convention.

AusAID’s engagement with other government departments at the policy level remained strong and the Development Effectiveness Steering Committee was central to these efforts. The committee is chaired by AusAID’s Director General and comprises deputy secretaries of the Department of the Prime Minister and Cabinet, Treasury, Department of Foreign Affairs and Trade, and the Department of Finance and Deregulation. The committee continued to play a valuable role in advising the government on major new official development assistance strategies and initiatives, with a focus on coherence, quality and development effectiveness.

Regular high-level dialogue was held across government during the year under the guidance of the strategic partnership agreements that AusAID maintains with key agencies. These agreements articulate the shared interests and relative strengths of participating agencies, as well as around specific policy and program issues. In 2007–08, strategic partnership agreements with the Treasury, Department of Finance and Deregulation, Australian Federal Police, Australian Public Service Commission, and Attorney-General’s Department were subject to high-level review at which their ongoing worth was confirmed. In addition, AusAID signed new partnership agreements with the Australian Broadcasting Corporation and the Australian Electoral Commission.

AusAID works in close partnership with the Department of Foreign Affairs and Trade and the Department of the Prime Minister and Cabinet on most aspects of Australian development assistance. In 2007–08, AusAID also worked closely with the: • Treasury, Department of Defence, Department of Foreign Affairs and Trade, Department of the Prime Minister and Cabinet, Department of Agriculture, Fisheries and Forestry, the Office of National Assessments and the Australian Centre for International Agricultural Research on developing both short and long-term responses to food security challenges • Department of Climate Change and Department of Environment, Water, Heritage and the Arts on developing and implementing international climate change and environment policy and programs • Department of Foreign Affairs and Trade, Department of Climate Change, Department of Immigration and Citizenship, the Treasury, Department of Education, Employment and Workplace Relations, Australian Public Service Commission, Department of

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Environment, Water, Heritage and the Arts, Department of Health and Ageing, Australian Sports Commission, Department of Agriculture, Forestry and Fisheries, Department of Defence, and Department of the Prime Minister and Cabinet on an engagement strategy in the Pacific • 11 government agencies on the development and implementation of the Strongim Gavman Program in Papua New Guinea, ranging from the Treasury and the Department 2 of Finance and Deregulation, to the Australian Customs Service, the Australian National Audit Office, and the Department of Infrastructure, Transport, Regional Development and Local Government • Department of Finance and Deregulation, the Treasury, and the Australian Office of Financial Management in delivering Australia’s engagement in Solomon Islands SECTION • Department of Foreign Affairs and Trade, Department of Finance and Deregulation, the Treasury, and the Department of the Prime Minister and Cabinet on Australia’s partnership with Indonesia, in addition to a wide range of other government agencies working in partnership with the Indonesian Government on governance improvements.

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OUTPUT 1.2—PROGRAM MANAGEMENT

Summary of performance

Indicator Result SECTION Major programs harmonised with key donors and Australian Government aid funds provided aligned with partner government systems. through partner government systems and donors increased significantly during 2007–08. A partnership agreement was developed with the UK’s Department for International

Development. Australia is also encouraging the 2 multilateral development banks to increase their engagement in the Pacific region. To this end, Australia has partnered with the World Bank and the Asian Development Bank to establish a trilateral cooperation agenda to harmonise engagement between the three partners in the Pacific region.

Aid modalities reflect good international practice. In 2007–08, AusAID commenced mandatory peer reviews at concept and design stage for significant aid activities (usually $3 million or more). These reviews ensure aid activities draw upon good international practice, are of a high quality and use an appropriate aid modality.

Continuous improvement of tools A total of 10 business processes have and processes. been mapped and released to June 2008, providing staff across the agency with the mandatory and detailed steps to complete key agency processes.

Core quality principles applied. After a successful pilot in 2006–07, AusAID approved its performance assessment and evaluation policy in December 2007. The policy is built around a set of core quality principles derived from international good practice. A key component of the new policy is an agency quality reporting system.

Quantity: number of initiatives, number A total of 1233 initiatives were managed during of new initiatives launched and ongoing the year. Of these, 504 were new initiatives and initiatives managed. 729 were ongoing.

The way aid is delivered has a major influence on its effectiveness. Aid that is aligned with partner government policies, and has strong local ownership, has a better chance of being effective and sustainable. When donors work together, it works even better. The 2007 Annual Review of Development Effectiveness notes there is evidence that the aid program is increasingly adopting these approaches although generating reliable information has proved challenging for Australia and for other donors.

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Major programs harmonised with key donors and aligned with partner government systems

In 2007–08, Australia increased and strengthened its engagement with key donors. A partnership agreement was developed with the UK Department for International Development, identifying a number of areas for collaboration such as multilateral 2

reform, climate change, food security and economic growth. Australia also committed to working closely with New Zealand and other donors to facilitate common approaches to development assistance and performance measurement in the Pacific.

Australia is encouraging the multilateral development banks to increase their engagement in the Pacific region, and has established, in partnership with the World Bank and Asian SECTION Development Bank, a trilateral cooperation agenda to harmonise engagement between the three partners. Australia is also establishing with the banks the Pacific Region Infrastructure Fund, worth $126.8 million over four years, to improve basic infrastructure provision in the Pacific.

Australia has seen a significant growth in aid funds flowing through partner government systems and other donors due to a greater focus on program and sector-wide approaches in new designs, and harmonising arrangements with key donors. These strategies are aligned with partner government development plans, led by partner governments where possible, and developed jointly with other key donors. They are undertaken with the appropriate level of assessment and analysis, and with the necessary controls in place.

AusAID also progressed guidance on fiduciary risk and procurement diagnostic assessments for the use of partner government systems. This guidance will help major programs when using partner government systems and joint donor funding arrangements. AusAID continues to participate in and support the OECD Development Assistance Committee Joint Venture for Procurement (a forum involving partners and key donors such as UK Department for International Development and the World Bank). The joint venture focuses on procurement reform issues, benchmarking and assessment methodology, a common tool for assessing the quality of a country’s procurement system, which aims to formulate capacity development plans to improve partner country procurement systems at the national level and facilitate increased donor use of these systems.

Aid modalities reflect good international practice

AusAID activities are delivered through a mix of aid modalities, ranging from partner government systems and sector-wide approaches to stand alone activities. In keeping with international good practice, during the design and implementation of activities, AusAID applies the key principles of ensuring partner country ownership, working to a shared sector strategy (grounded in the partner government’s development plan), inclusive donor coordination and strengthening and moving towards using partner government systems. AusAID progressed guidance for staff around good practice for harmonisation and alignment and using country systems, which will further strengthen business processes around aid modalities.

In 2007–08, AusAID formalised its design business process to include mandatory peer reviews at concept and design stage for significant aid activities (usually $3 million

150 PERFORMANCE OUTPUT 1.2—PROGRAM MANAGEMENT

or more). These peer reviews provide an opportunity for contestability, ensure quality and determine whether the aid modalities selected are appropriate and reflect good international practice.

During the year, AusAID engaged with other donors to maintain an up-to-date awareness

of international best practise and lessons learnt. Forms of engagement included an SECTION AusAID-World Bank workshop on sector-wide approaches held in November 2007, staff secondments and exchanges, participation in the Development Assistance Committee, and dialogue with the donor community throughout country offices.

Continuous improvement of tools and processes 2

There has been significant progress in developing and releasing AusAID’s ‘rules and tools’ to support improved program delivery and corporate enabling processes. A total of 10 core business processes were mapped and released to June 2008, providing staff across the agency with the mandatory and detailed steps to complete key tasks. Processes available to date have included designing an aid activity, preparing a quality at implementation report, spending public money and contracting. A further 15 processes have been progressed and are planned for release in 2008–09.

As part of a continuous improvement cycle, all new business procedures have been reviewed over 2007–08, a process which has included incorporating suggestions from staff.

Core quality principles applied

Following a successful pilot phase in 2006–07, AusAID adopted its performance assessment and evaluation policy in December 2007. The policy is built around a set of core quality principles derived from international good practice. A key component is an agency quality reporting system, which collects performance information at the activity, sector and program (country and multilateral) levels for significant aid activities (usually $3 million or more). It is integrated with AusAID’s existing activity management system and a range of supporting business processes. A major focus of AusAID’s approach to collecting and reporting performance information is to improve corporate accountability in relation to program effectiveness. To date, the report preparation process has highlighted strengths and weaknesses in the quality reporting system, and AusAID is refining both the policy’s content and support arrangements to improve the system.

151 AUSAID ANNUAL REPORT 2007—2008

OUTPUT 2.1—AUSTRALIA-INDONESIA PARTNERSHIP FOR RECONSTRUCTION AND DEVELOPMENT

2 Summary of performance

Indicator Result

Quality: Quality: • major programs harmonised with The Australia-Indonesia Partnership for

SECTION key donors and aligned with partner Reconstruction and Development (AIPRD) is government systems delivered in-line with Indonesian Government priorities, using government systems • aid modalities reflect good and in coordination with other donors international practice where appropriate. • continuous improvement of tools Quality of modalities, tools and processes were and processes reported in the 2007 AusAID development • core quality principles applied. effectiveness report and a review of AIPRD commenced.

Quantity: Quantity: • number of initiatives; number of new All funds have been allocated to eight major initiatives launched and ongoing initiatives, including two loan programs for initiatives managed. education and roads, as agreed with the Indonesian Government in 2005.

The Australia Indonesia Partnership for Reconstruction and Development (AIPRD) was jointly agreed by the governments of Australia and Indonesia following the 2004 Indian Ocean tsunami for large-scale social and economic development programs across Indonesia, and reconstruction in Aceh and Nias. The five-year $1 billion program includes $500 million in grants and $500 million in highly concessional loans.

The Australian Government has allocated all of these funds and at 29 June 2008, $346.4 million in grants and $137.6 million in loans had been disbursed.

A review of AIPRD commenced in 2008 to assess its performance and identify broad lessons learned in its implementation. The review will be completed in 2008–09 and will make recommendations to improve future development assistance provided by AusAID, including to Indonesia.

The $300 million loan agreement for the Eastern Indonesia National Road Improvement Project became effective in March 2008. Engineering design commenced for the civil works to improve up to 750 kilometres of national roads and 1000 metres of bridges. These distances have been revised downwards due to increases in the price of oil and other commodities and widening of road specifications. The work will be done in 24 packages across eastern Indonesia and initial tenders will be issued from mid-2008.

The Government Partnerships Fund continued to create long-term institutional linkages and partnerships between 13 Australian agencies and their Indonesian public sector

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counterpart institutions. Skills, knowledge and expertise have been exchanged between over 1500 Australian and Indonesian officials working in economic governance, financial management and public sector management. An independent mid-term review identified the value of these relationships for exchanging technical information and experience, and transferring best-practice models from Australia to Indonesia. SECTION Affected communities in Yogyakarta and central Java were assisted to rebuild businesses and community infrastructure following the May 2006 earthquake. This included training in disaster resilience and over 20 school upgrades.

In tsunami-affected areas, almost $225 million has been spent on reconstruction and rehabilitation—or about 90 per cent of the $252.8 million committed, including 2 $181 million in AIPRD funds.

Key achievements in 2007–08 included: • completing reconstruction of the Centre for Brackishwater Aquaculture Development at Ujung Batee in Aceh, the centerpiece of efforts to rebuild livelihoods in the aquaculture industry by training farmers to better manage their fish and prawn production and produce better quality, higher yields. Ex-combatants in the civil conflict, in particular, have been assisted • assisting local governments in Aceh to deliver a range of services to the community more quickly and cheaply. This best practice in governance reform is being adopted and self-funded by 35 local governments • advising the Aceh Jaya district government to prepare regulations for the first simultaneous direct elections in 138 villages, and supporting women’s participation, resulting in the election of the first two female village leaders • building or expanding a further 540 junior secondary schools, so now more than 900 schools have been built, providing about 148 500 additional places for students • assisting Indonesia to develop national education standards and a quality assurance system, improve examination systems, balance gender in education to keep more girls in school longer and increase the number of female teachers and administrators, and cater for children with disability.

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FINANCIAL RESULTS

The Australian National Audit Office was unqualified in its opinion that AusAID’s 2007–08 financial statements are fairly stated and presented.

Departmental financial performance 2

AusAID’s departmental outcome for the year ended 30 June 2008 was an operating surplus of $0.154 million.

Actuals Actuals 2007–08 2006–07 SECTION Departmental operating statement ($’000) ($’000) Operating revenue Outcome 1 102 960 87 929 Operating revenue Outcome 2 6 520 5 745 Operating expense Outcome 1 106 164 90 176 Operating expense Outcome 2 3 162 3 274 Operating result 154 224

Cash reserves are reflected in cash on hand at 30 June as well as the appropriation receivable, totalling approximately $15.654 million. Cash reserves increased in 2007–08 as a result of the operating surplus and recognition in contributed equity of capital appropriation for AusAID’s central office fitout and Australia’s overseas diplomatic missions—improved security and upgrades.

Administered financial performance

Total overall administered expenses in 2007–08 were $2 809 954 million, with 99 per cent of the agency’s regular appropriation for the aid program being expensed.

Actuals Actuals 2007–08 2006–07 Administered expenses and liabilities ($’000) ($’000) Outcome 1 2 615 173 1 741 577 Outcome 2 194 781 161 082 Total expenses 2 809 954 1 902 659 Total liabilities 999 927 966 064

154 PERFORMANCE FINANCIAL RESULTS

Outcome 1—To assist developing countries reduce poverty and achieve sustainable development in-line with Australia’s national interest.

Administered expenses were $2 615 173 million. In 2007–08, AusAID commenced a significant new package of initiatives under Outcome 1 in the areas of infrastructure,

education, health, environment, humanitarian and emergencies and performance SECTION incentives total expenditure against this package was 100 per cent.

One of the main differences between administered expenses and cash flows (detailed in section 4) arises from recognition of multi-year liabilities to multilateral development institutions which are committed in the year the agreement is signed and discharged over following financial years. Two new multilateral replenishment agreements for the 2 International Development Association (IDA 15) and the Heavily Indebeted Poor Countries Initiative were entered into in 2007–08 totalling $617.81 million.

Outcome 2—Australia’s national interest advanced by implementing a partnership between Australia and Indonesia for reconstruction and development.

The total appropriation of $1 billion for AIPRD was received through the 2004–05 Portfolio Supplementary Additional Estimates and was credited to two special accounts— one for grants and one for loans. $121.115 million in AIPRD grants were expensed and $80.381 million in AIPRD loans were disbursed in 2007–08. Supplementary administrative costs for the implementation and management of AIPRD are funded through Bill 1 appropriations. In 2007–08, $7.533 million of the supplementary administrative costs for AIPRD were expensed.

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Jamie Clout, Deputy Director General, AusAID, with Lisa Rauter, Chief Financial Officer, AusAID in Kupang, Indonesia visiting an AusAID assisted regional health Margaret Thomas, Minister-Counsellor, AusAID, inspecting centre run by the World Food Programme (WFP). upgraded facilitates at the Mt Hagen General Hospital in Ms Nunuk Supraptinah and Mr. Zhigang Weng from the Papua New Guinea, which she opened in October 2007 with Kupang Area Office of the WFP explain the nutrition Sasa Zibe, PNG Minister for Health. The hospital received program for mothers, which teaches proper nutrition more than $3.4 million through the Australia-PNG Incentive for children and during pregnancy Fund program for significant infrastructure development Photo: AusAID Photo: Roger Wheatley

Opposite » Richard Moore, Deputy Director General, AusAID, launches Brick by brick: the building of an ASEAN economic community in December 2007. Brick by brick is an accumulation of research undertaken by the ASEAN-Australian Development Cooperation Programme’s Regional Economic Support Facility which is funded by AusAID for up to $14.5 million from 2002 to 2008 Photo: Angus Braithwaite

156 MANAGEMENT AND ACCOUNTABILITY Section 3

Corporate governance External scrutiny Management of human resources Purchasing and assets Service charter AUSAID ANNUAL REPORT 2007—2008

CORPORATE GOVERNANCE

Internal governance structures

Executive Committee (at 30 June 2008)

Bruce Davis: Director General Richard Moore: Deputy Director General—Asia Murray Proctor: Deputy Director General—Program Enabling Catherine Walker: Deputy Director General—Global Programs Jamie Clout: Deputy Director General—Corporate Enabling Scott Dawson: Deputy Director General—Pacific and Papua New Guinea

3 Governance and the executive

AusAID has five governance committees, which assist the Director General in his strategic oversight of both program and corporate performance.

The governance committees comprise the: SECTION • Executive Committee, which assists the Director General in setting the agency’s overall policy direction and development agenda, monitoring global international thinking, managing and overseeing vital corporate relationships (particularly ministerial and whole-of-government), and acting as a board of management to provide strategic oversight of program, and corporate management and performance. • Audit Committee, which assists the Director General and the Executive Committee with legislative, corporate governance, risk management and financial responsibilities for maintaining an effective and efficient system of internal controls, as well as informing performance and accountability. • Resources Committee, which assists the Director General and the Executive Committee with cross-agency analysis of relevant management information, and provides recommendations on the allocation and application of AusAID’s financial, human and physical resources. • Placements Committee, which recommends staff placements in Canberra and for postings overseas. • Information and Knowledge Management Committee, which has a primary role in identifying and developing information and knowledge management policies and practices that support more effective information flows and knowledge management across the aid program.

Corporate reform

AusAID is undertaking a substantial project of reform for its systems, processes and models of engagement. This began with the push to overseas-based development program implementation and continues to be driven by new government priorities, a significant

158 MANAGEMENT AND ACCOUNTABILITY CORPORATE GOVERNANCE

increase in overseas development assistance and the need for greater innovation in aid mechanisms. The AusAID 2010—Director General’s blueprint (February 2007) described a broad institutional picture of how AusAID will be structured and function in the near-term, requiring stronger executive governance, improved access to research and analysis along key development themes, greater rigour and contestability in terms of program quality and performance, and a strengthened corporate framework to support a geographically dispersed workforce. Significant progress has been made in all these areas.

New challenges lie ahead over the medium-term, including a stronger focus on the Millennium Development Goals and further significant scaling-up of the aid budget, and regional and multilateral partnerships.

Corporate planning

AusAID’s strategic planning framework is based on the Corporate Plan 2006–2010, Agency Business Plan 2006–2010, business unit plans and individual performance plans. SECTION The corporate plan articulates the agency’s policy and planning goals, defines the role of AusAID and sets high-level strategies. In particular, it details the aid program objectives, aid policy goals, aid program principles and strategies to deliver the aid program.

The agency business plan commits AusAID to action in more detail, focusing on what 3 needs to be done to plan and deliver an even more effective and significantly increased aid program in-line with the Australian Government’s policy and effectiveness imperatives for the aid program.

During 2007–08, all business units prepared a business unit plan. These plans outlined the objectives, strategic context, key deliverables as well as the financial and human resources required to deliver agreed outcomes for each unit. Six-monthly individual staff performance plans were based on deliverables in each of the business unit plans, ensuring the performance goals of individuals, and the agency’s overarching strategic objectives, were linked. Business plans are reviewed each quarter and adjusted where necessary. The business unit planning process is reviewed and refined after each cycle to ensure it remains an effective planning tool.

Aid advisory and coordination mechanisms

Development Effectiveness Steering Committee

The Development Effectiveness Steering Committee is a key whole-of-government body established to strengthen coordination of the aid program and to advise government on major official development assistance strategy and budget proposals. The committee is chaired by the AusAID Director General and comprises deputy secretaries of the Department of the Prime Minister and Cabinet, Treasury, Department of Finance and Deregulation, and the Department of Foreign Affairs and Trade as well as AusAID’s Chief Economist and Deputy Director General Pacific and PNG Division.

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A major role for the committee is to advise on the operations of the Office of Development Effectiveness. It focuses on four themes, including: • effectiveness • whole-of-government country and regional strategies • official development assistance budget strategy • implementation of policy priorities.

The committee played a central role in the development of the 2007–08 budget, reviewing and commenting on all eligible budget proposals with an emphasis on policy coherence, quality and development effectiveness.

Committee for Development Cooperation

The Committee for Development Cooperation is a joint AusAID non-government organisation advisory and consultative body made up of six members: three elected 3 from the non-government organisation community and three from AusAID. The committee is scheduled to meet at least twice a year to review accreditation reports that it commissions and to make recommendations to the AusAID delegate.

The committee met three times during the year to consider four accreditation reports.

SECTION In 2007–08, one organisation was re-accredited at base level, one failed and two new organisations were accredited at the base level. There are now 41 Australian non- government organisations accredited with AusAID.

The committee also provides a mechanism for consultation with the Australian professional development non-government organisation community. Consultations on opportunities for broadening and deepening non-government organisation engagement with the aid program commenced in 2007–08.

Office of Development Effectiveness

The Office of Development Effectiveness monitors the quality and assesses impact of the Australian aid program. It reports directly to AusAID’s Director General and is guided by the Development Effectiveness Steering Committee. It has a significant reporting role through the production of the Annual Review of Development Effectiveness.

Key achievements in 2007–08 included tabling the inaugural Annual Review of Development Effectiveness on 20 March 2008, introducing a new performance assessment and evaluation policy, completing a number of evaluations and reviews, including on anti-corruption approaches, and continuing or commencing work on major evaluations on violence against women, a Papua New Guinea HIV/AIDS impact assessment, service delivery in fragile states, and aid to middle income countries. A dedicated website was launched for the office during the year (www.ode.ausaid.gov.au) to help publicise its work and stimulate public debate on the effectiveness of the aid program.

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Internal audit

Audit Committee

The Audit Committee is a central element of the agency’s corporate governance framework. Its primary objective is to assist the Director General to meet his legislative, corporate governance, risk management and financial responsibilities for maintaining an effective and efficient system of internal controls, and improving performance and accountability.

To support this, the committee provides independent assurance to the Director General by reviewing, monitoring and, where necessary, recommending improvements to AusAID’s management systems, key business processes and corporate governance framework, including risk management and fraud control policies, financial reporting processes,

internal control processes, internal audit activities, external audit processes and SECTION legislative compliance.

The Audit Committee is chaired by the Deputy Director General, Program Enabling Division and includes representatives from the financial, contract services and program

management areas, as well as two external members. The Australian National Audit Office attends in an observer capacity. 3

Performance Review and Internal Audit Section

AusAID’s Performance Review and Internal Audit Section facilitates efficient, effective and ethical management of Australia’s aid program delivery by providing assurance to senior management on the quality and adequacy of management performance and internal controls.

In 2007–08, the annual audit program focused on several key areas: • compliance auditing of internal functions, commercial contractors, non-government organisations and tertiary institutions • performance auditing of program administration • reviews of business processes and systems • updating risk and fraud management procedures, and developing and delivering risk management and fraud control training to staff • upgrading audit systems, processes and procedures.

Eleven major compliance audits were completed during the year.

Performance audits of the Solomon Islands, Indonesia, South Africa, Mozambique and Vietnam programs were carried out in 2007–08. Performance indicators were revised to reflect AusAID’s changing work environment and applied to test the efficiency and effectiveness of key business processes and management practices.

The Performance Review and Internal Audit Section continued to undertake research and analysis, and provide advice and guidance to business areas within AusAID on risk, fraud, compliance and performance.

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Risk management and fraud control

AusAID’s risk and fraud management policies and procedures were reviewed and a training and fraud awareness program was delivered in Australia and overseas. Regular reviews and upgrades of systems, processes and procedures were undertaken to ensure compliance with the Commonwealth Fraud Control Guidelines.

All AusAID programs were required to submit an annual risk and fraud management plan to report on major risks. Regional training workshops were held to support the implementation of these plans.

Australian National Audit Office

The Australian National Audit Office (ANAO) continued its involvement with the AusAID audit program and Audit Committee throughout the year. 3

In conjunction with other agencies, AusAID contributed to the audit of financial statements of Australian Government entities for the period ended 30 June 2008.

Ethics and values

SECTION AusAID continues to promote the ethics and values contained in the Australian Public Service Values and Code of Conduct, as set out in the Public Service Act 1999, and AusAID’s Collective Agreement 2006–2010.

Key documents released in 2007–08 that support the importance of ethics and values in the workplace include: • AusAID’s child protection policy, which articulates the agency’s zero tolerance of child abuse and provides practical steps to increase AusAID’s capacity to manage and reduce risks of child abuse associated with delivering aid activities • a revised code of conduct for overseas service to include guidance for AusAID staff on appropriate behaviour concerning children • the Disability Action Plan 2007–2010, which complements AusAID’s workplace diversity program • a harassment and anti-bullying policy, promoting a culture free from harassment and bullying.

Other internal policies and circulars providing guidance for staff include procedures for dealing with offers of gifts, benefits, hospitality and sponsored travel, conflict of interest and senior executive service declaration of personal interests.

The need to maintain high ethical standards continues to be promoted through induction courses for new employees, training for employees being posted overseas, training for whole-of-government officials deployed overseas by AusAID, and individual performance management agreements. Fraud awareness training is also provided for agency staff.

162 MANAGEMENT AND ACCOUNTABILITY EXTERNAL SCRUTINY

EXTERNAL SCRUTINY

Judicial scrutiny

There were no judicial decisions or decisions of administrative tribunals in 2007–08 that had, or may have, a significant impact on the operations of the agency.

Ombudsman

One formal investigation was conducted by the Commonwealth Ombudsman on AusAID’s activities during the year.

Privacy Commissioner

No investigations were conducted by the Privacy Commissioner in 2007–08. SECTION

Parliamentary committees

AusAID appeared before the following parliamentary committees during the year:

• Senate Standing Committee on Foreign Affairs, Defence and Trade: consideration of 3 2007–08 additional estimates (21 February 2008). • Senate Standing Committee on Foreign Affairs, Defence and Trade: consideration of 2007–08 budget estimates (3 June 2008).

163 AUSAID ANNUAL REPORT 2007—2008

MANAGEMENT OF HUMAN RESOURCES

Employment conditions were improved in 2007–08, particularly for overseas staff.

Employment conditions for locally engaged staff were redesigned, resulting in a set of clear and consistent terms in-line with local regulations and AusAID’s own human resource policies. Similarly, overseas terms and conditions of service for AusAID staff were updated and brought into line with the policies of other Australian Government departments with a large overseas presence. The changes provide more equitable arrangements for staff in the field and greatly improve clarity on overseas entitlements and obligations.

To strengthen AusAID’s human resource capabilities, work began to improve current functionality of the Aurion human resource management information system. Improvements will include online recruitment, integrated performance management, learning and development, functionality and payroll services. 3

Work also began on a comprehensive set of recruitment guidelines in response to the increasing competitiveness of the domestic labour market. AusAID remains committed to attracting, developing and retaining a high-quality workforce and uses best practice approaches to recruitment, promotion, assignment of duties, movement to or from other agencies, and advancement. SECTION Staff counselling and welfare services were continued through AusAID’s employee assistance program provider, and through the services of a dedicated in-house counsellor. The counsellor’s services have been invaluable for staff and their families overseas, particularly those serving in remote or difficult locations or where staff have had to respond to emergency and disaster situations.

Performance management

Performance management is a key driver for AusAID to meet strategic objectives, increase productivity, improve communication and encourage professional and managerial development. As part of the agency’s continual improvement process, a transitional performance management system was developed for 2007–08, which is a 12-month cycle aligned to AusAID’s corporate and business planning and the financial year.

For 2007–08, a new performance management system will be developed and introduced as part of the broader business process reform in AusAID.

Remuneration, Australian workplace agreements and the AusAID Collective Agreement 2006–2009

AusAID’s staff are employed under the AusAID collective agreement, Australian workplace agreements (AWAs) or common law agreements.

With the introduction of the ‘transition to forward with fairness’ legislation, AusAID is now using determinations under section 24(1) of the Public Service Act 1999 to provide flexibility to adapt remuneration and employment conditions to the agency’s needs and individual circumstances. At 30 June 2008, 91 staff, including senior executive service (SES), remain on AWAs. This number will reduce as the agreements expire.

164 MANAGEMENT AND ACCOUNTABILITY MANAGEMENT OF HUMAN RESOURCES

Non-SES staff who are not party to an AWA are covered by AusAID’s collective agreement. The agreement provides competitive, flexible and inclusive conditions, and demonstrates AusAID’s commitment to being an employer of choice that recognises employees as its most valuable resource.

Senior executive remuneration

Statistics on SES salaries in 2007–08 are in appendix D. The transition to common law agreements has begun with new SES staff being employed under these arrangements.

A total of 26 SES and four non-SES staff were eligible for performance pay during 2007–08 for performance in 2006–07. Pay was calculated over 15 months to bring the SES performance cycle in-line with the financial year. The aggregate was $376 637 with the average $12 555. The minimum payment was $819 and the maximum $28 261.

Non-salary benefits under the collective agreement, common law agreements SECTION and Australian workplace agreements

AusAID has introduced a range of updated policies to continue to provide flexibility for staff, including home-based work, part-time and job sharing, condensed hours, flextime and time off in-lieu. Other benefits include half-pay maternity leave, paternity leave, the 3 ability to purchase additional leave, adoption leave, expanded maternity leave and free flu vaccinations. All employees are given paid time off for the two normal working days between Christmas and New Year’s Day.

Non-salary benefits covered in AWAs and common law agreements for SES employees include a vehicle and fuel card, mobile phone, airline club membership and home access to office systems.

The current collective agreement also provides a package of conditions for staff posted overseas, which is intended to acknowledge the sometimes difficult circumstances for attaining a good work/life balance for staff while on posting.

Recruitment

During 2007–08, AusAID concentrated on providing enhanced recruitment services to ensure its business functions were being met and that recruitment was targeted to employ the right people with the right skills. Particular recruitment activities have also targeted specialised sectors, including health, education, infrastructure and environment, and specialist skills, such as finance, human resources, information technology and public affairs.

Recruitment procedures, practices and plans have been developed to achieve more timely recruitment. Further refinement is expected in 2008–09 to ensure strategies encompass recruitment both nationally and internationally, and address the complex arrangements for engaging a mix of Australian Public Service employees, locally-engaged staff, and a range of consultants and contractors.

165 AUSAID ANNUAL REPORT 2007—2008

Graduate recruitment

The 2008 graduate recruitment campaign resulted in an intake of 19 graduates from a total of 749 applicants. As in other years, high calibre applicants were attracted with many having either post-graduate studies or work experience in related fields. The successful candidates were selected for their skills, experience, qualifications and ability to contribute effectively to AusAID’s work.

The program has been extended to run from February to December and includes an intensive induction program that presents an overview of AusAID’s role in developing aid policy and delivering the aid program. It now also includes three work rotations to provide graduates with a comprehensive understanding of AusAID and the whole-of-government engagement in delivering the aid program.

3 Graduate careers fairs

A focus for this year’s graduate recruitment campaign was attending careers fairs in major capital cities and redeveloping marketing materials related to the graduate program. This year’s campaign resulted in an additional 100 applications, as well as a reduction in the number of applicants who are not eligible to apply. SECTION AusAID’s graduate recruitment coordinator attended fairs in Canberra, Perth, Brisbane, Melbourne, Sydney and Adelaide, primarily with universities that provide studies in the areas of international relations, international development, political science, law, economics, and humanitarian studies. The coordinator was accompanied by a graduate from a previous year who could share their experiences with students.

The numbers of students attending the fairs varied depending on the university, but ranged from 2000 to 7000.

AusAID’s presence at the fairs is a cost effective way of marketing to a targeted audience. Students were please to see AusAID in 2007–08 and our absence in previous years was noted.

AusAID’s graduate recruitment coordinator Stuart Leeson discusses graduate opportunities with a student at the Australian National University Career Fair Photo: Hannah Derwent

166 MANAGEMENT AND ACCOUNTABILITY MANAGEMENT OF HUMAN RESOURCES

Learning and development

AusAID continued to strengthen its learning and development program in 2007–08 to support staff in their ongoing professional development and performance improvement.

Formal and informal training opportunities were promoted, including induction, programs on aid program management, corporate systems, thematic workshops and a range of professional development skills. Programs were delivered through a combination of in-house presenters partnering with external experts and corporate management trainers. Training partnerships with other donors in the Pacific were also developed.

The focus was on analysing staff learning needs and a minimum requirement was introduced and linked to performance management for all executive level and APS staff to undertake five days of professional development.

Staff leadership capacity has been increased in recognition of the role strong leadership SECTION plays in implementing the government’s development agenda and scaling up the aid program. In-house leadership and management programs were delivered for 231 executive level 1 and 2 staff and senior overseas-based staff.

Core learning requirements for new starters, new managers and staff serving overseas were also implemented and promoted during the year. These will be progressively refined 3 by roles and levels to focus on complex aid modalities, and new ways of partnering with governments and other donors.

Staff engaged overseas attended a range of training programs, including induction and specialised aid program management courses. Other Australian Government agencies operating in the Asia-Pacific region also participated in various programs.

As part of the government’s focus on multilateralism, workshops were arranged on sector wide approaches, and the economics of service delivery in health and education. Presenters included representatives from the World Bank, United Nations Development Programme and Asian Development Bank.

To strengthen engagement with key partners, AusAID reviewed its language training policy and recommended supporting language capability in designated positions. Study support was also offered for staff to upgrade academic qualifications relevant to the aid program.

Occupational health and safety (OHS)

AusAID demonstrates its commitment to providing a safe and healthy workplace through its OHS agreement and various OHS policies and procedures. The current OHS agreement will be superseded by new health and safety management arrangements in September 2008, as required under the Occupational Health and Safety (Commonwealth Employment) Amendment Act 2006.

167 AUSAID ANNUAL REPORT 2007—2008

OHS Committee and representatives

AusAID’s OHS Committee meets quarterly and is the mechanism for continuing consultation between management and staff on OHS matters. Each designated work group has a health and safety representative who is a member of the committee. During the year, vacant health and safety representative positions were filled as required and two representatives undertook OHS accredited training.

Rapid response team deployment guidelines

In March 2008, AusAID endorsed its rapid response team deployment guidelines, developed to address the agency’s duty of care obligations to prepare and support staff deployed to humanitarian relief, emergency, disaster or conflict situations.

Measures taken during the year to address health, safety and welfare in the workplace included: 3 • continuing to provide both an in-house psychologist and external employee assistance program to ensure all employees have access to counselling support services • conducting 320 ergonomic workstation assessments to ensure correct set-ups and to recommend specific equipment to assist employees • providing Pilates and yoga classes SECTION • vaccinating 230 staff as part of the influenza vaccination program • continuing to enhance the OHS intranet site with relevant information and legislative changes, and creating an OHS mailbox • providing OHS briefings to staff as part of induction training and pre-posting briefings • providing training on personal safety and awareness, first aid, and how to deal with challenging events.

Reporting requirements under the Act

There were no incidents that required a section 68 notice to Comcare. No notices were issued under section 29, section 46 or section 47. No directions were given to the Department of Foreign Affairs and Trade under section 45. There were no investigations conducted.

Commonwealth Disability Strategy

AusAID continues to adhere to the principles embodied in the Commonwealth Disability Strategy framework.

During 2007–08, AusAID developed and began implementing the AusAID Disability Action Plan 2007–2010. The plan is consistent with the Commonwealth Disability Strategy and the Disability Discrimination Act 1992. It outlines the agency’s ongoing commitment to meeting the needs of people with disability through reasonable adjustments to our work environment, employment procedures, staff management, training and development.

168 MANAGEMENT AND ACCOUNTABILITY MANAGEMENT OF HUMAN RESOURCES

Some of the ways in which AusAID implements the principles of reasonable adjustment include: • assisting people with disability with the recruitment process • managing individual cases to obtain appropriate professional advice and to identify specific requirements for an employee • providing specialised equipment • providing appropriate support for staff, supervisors and managers.

Workplace diversity

AusAID’s Workplace Diversity Program 2007–2010 outlines the agency’s commitment to providing a fair and equitable work environment for all employees.

As part of the continuing implementation of the program, a workplace harassment and anti-bullying policy was developed and endorsed during the year, and 10 workplace SECTION diversity and workplace harassment contact officers were appointed. AusAID also developed and commenced implementing the AusAID Disability Action Plan 2007–2010.

In May 2008, as part of Reconciliation Action Week, the agency launched its

Reconciliation Action Plan, which details AusAID’s approach to encouraging reconciliation 3 between Indigenous and non-Indigenous Australians by sharing expertise, knowledge and experience. It also outlines the steps AusAID will take to increase the engagement of Indigenous Australians in the aid program.

AusAID organised cultural activities to celebrate National Aborigines and Islanders Day Observance Committee (NAIDOC) Week in July 2007. These activities raise employee awareness of Indigenous culture and affairs, and reinforce AusAID’s commitment to recognising and supporting cultural diversity in the workplace.

AusAID also offers the Working Across Cultures training course to all employees before they are deployed overseas. The workshop aims to build understanding of the relevance of culture and cultural differences between Australians and people from Asia and the Pacific.

Staff awards

Australia Day Achievement Awards

Australia Day Achievement Awards are presented to staff who have made an especially valuable contribution to AusAID over the past year or number of years. The Director General presented seven awards in 2007–08. Award recipients are detailed in appendix D.

169 AUSAID ANNUAL REPORT 2007—2008

PURCHASING AND ASSETS

Purchasing

Procurement contracts awarded and managed

A total of 1774 new procurement contracts were entered into during the year with a value of approximately $927 million. The number and value of new contracts increased slightly from the previous year when 1663 procurement contracts were let with a value of approximately $841 million12. The majority of contracts continued to be with small and medium-sized enterprises. At 30 June 2008, AusAID was managing approximately 1062 procurement contracts, with a total value of about $3.465 billion.

Service orders issued under AusAID’s period offers made up 53 per cent of all new procurement contracts by number. Period offers are standing offers with individuals and 3 organisations to provide short-term specialist advice and services on an as-required basis for set fees. There are currently more than 168 agreements in place providing access to about 891 contractors across 19 development sectors. An open tender process is used to assess personnel for technical quality and value for money.

SECTION Consultants

In 2007–08, AusAID entered into five new consultancy contracts with a total expenditure of $244 171. In addition, four ongoing consultancy contracts were active with a total expenditure of $77 610. Details of each new consultancy worth $10 000 or more, is provided in appendix G.

All consultancies were procured in accordance with Commonwealth Procurement Guidelines. Of the five new consultancy contracts, two were engaged following a select tender process and three were directly sourced.

Details of contracts, agreements and consultants

Details of all AusAID contracts and consultancies valued at more than $10 000 are published on the AusTender website www.tenders.gov.au

No contracts in excess of $10 000 or standing offers were exempted by the Director General from being published in AusTender.

In accordance with the Senate Order on Departmental and Agency Contracts, all contracts, agreements and consultancies let over $100 000 are also listed each calendar and financial year on AusAID’s website.

12 The contract and agreement figures reported in previous annual reports included non-procurement agreements. The figures reported this year include procurement contracts only.

170 MANAGEMENT AND ACCOUNTABILITY PURCHASING AND ASSETS

Continuous improvement in contracting

AusAID continued to improve its design and contracting processes by developing and promoting new business processes. These were further complemented with the appointment of specialist activity design advisers and support staff. Training on activity design and contracting is provided regularly to agency staff.

Purchasing policy

AusAID’s procurement framework reflects the core principle governing Australian Government procurement—value for money. AusAID conducts all procurement in accordance with the Commonwealth Procurement Guidelines, as well as the agency’s Chief Executive Instructions and procurement guidelines. AusAID’s procurement framework encourages competition, ensures the agency uses resources efficiently, effectively and ethically, and makes decisions in a transparent and accountable manner. Procurement practices are non-discriminatory and Australian aid is untied. SECTION

Australia’s aid program procurements are exempt from the mandatory procedures outlined in the January 2005 Commonwealth Procurement Guidelines. From 1 July 2005 however, the agency elected to apply the mandatory procedures to program procurements above a

value threshold, with limited exceptions, to adopt best practice policies and procedures. 3 All procurements to which the mandatory procedures apply (major procurements) are conducted by a centralised team of procurement experts in Canberra and probity advisers are appointed for all high-risk procurements.

In 2007–08, major procurements were publicly advertised on the AusTender website and in the Weekend Australian and other major capital city newspapers, where appropriate. As one of the many changes AusAID has made following the decision to untie the Australian aid program, major procurements are also advertised on the Development Assistance Committee untied aid website of the Organisation for Economic Co-operation and Development (OECD). This notifies international organisations and enables them to bid for Australian development opportunities.

Responsibility for small value procurements and the management of all contracts are devolved to activity managers in Australia and overseas. The agency supports the devolved approach to small value procurement and contract management by providing detailed guidance material, standard tendering, contracting and approval documentation, and expert advice from specialist procurement officers in Canberra. In 2007–08, AusAID expanded training in Canberra and overseas to ensure compliant procurement practices were employed across the agency. Specialist procurement officers are operating in key overseas posts to further support devolved procurement practices. The specialist procurement officers in country enable timely and direct support for all small value procurement and contract management activities at post.

AusAID’s tender documentation defines the tender conditions, requirements, assessment procedures and selection criteria for each procurement. In accordance with Commonwealth Procurement Guidelines, preferred tenderers are selected on the basis of value for money. In the majority of instances, value for money is assessed based on a total score that combines a technical score against weighted selection criteria and a price score using a

171 AUSAID ANNUAL REPORT 2007—2008

like-for-like price assessment of the financial proposals. Alternatively, value for money may be based on a combined technical and price assessment, using a range of tools including price sensitivity analyses. The past performance of tenderers may also be considered.

Contractor performance reports are maintained to keep track of the quality of service being provided, and remain current for 12 months. Probity advice is sought, where considered necessary, and tenderers may request a debrief on their bids.

AusAID’s in-house legal advisors and, where appropriate, external legal advisors, ensure that the contracts AusAID enters into are clear, enforceable and comply with all relevant government policy and legislation.

Australian National Audit Office access clauses

In 2007–08, all contracts of $100 000 or more (inclusive of GST) provided for the Auditor General to have access to the contractor’s premises. 3

SECTION

172 MANAGEMENT AND ACCOUNTABILITY SERVICE CHARTER

SERVICE CHARTER

AusAID’s contracts charter articulates the agency’s approach to partnerships with contractors and improved delivery quality of aid activities. The charter describes AusAID’s expectations of contractors and what contractors can in turn expect from AusAID.

The principles, practices and expectations described in the charter are helping to ensure aid activities are implemented in a professional, efficient, transparent and accountable manner. The charter can be found at www.ausaid.gov.au/business/pdf/charter.pdf

AusAID’s procurement-related complaints handling process builds on the principles outlined in the contracts charter.

Contract disputes

AusAID’s contracts charter states the agency’s intention that (with the exception of fraud, SECTION bribery and corruption allegations, which are immediately referred to the appropriate authorities) disputes with contractors will be approached in a constructive, efficient and accountable way. AusAID’s contracts enable negotiation and alternative dispute resolution procedures and the majority of issues are resolved through direct negotiation.

3 One litigation claim arose during the year. One contract was terminated in this period and one formal dispute arose.

Assets

AusAID undertakes strategic property and asset management centrally to ensure maximum efficiency of its property portfolio around the globe. This ensures responsiveness and integrated services to staff are maintained at consistently high levels at all our locations.

All overseas property is managed in accordance with the Australian Public Service standards, legislative requirements, the Building Code of Australia and Australian standards.

173 AUSAID ANNUAL REPORT 2007—2008

Property management

AusAID is located in two buildings in Canberra, at 255 London Circuit and 20 Allara Street. It has a presence in 34 countries including:

Bangladesh Papua New Guinea Burma Philippines Cambodia Samoa China Singapore – an AusAID officer has been East Timor seconded to the Asia Pacific Economic Cooperation Secretariat Fiji Solomon Islands France South Africa India Sri Lanka

3 Indonesia Switzerland – for representation and Italy engagement with the United Nations Kenya and key international non-government Kiribati organisations, and to strengthen Laos partnerships with them on development SECTION and humanitarian matters Micronesia Thailand Mozambique Tonga Nauru United States of America – for Nepal representation and engagement at United New Caledonia – where AusAID manages Nations meetings, and to strengthen the selection and departure of Australian partnerships with United Nations Development Scholarship awardees as well development and humanitarian agencies as the arrival and support of Australian Vanuatu Regional Development Scholarship awardees Vietnam Pakistan Zimbabwe Palestinian territories

174 MANAGEMENT AND ACCOUNTABILITY SERVICE CHARTER SECTION

175 AUSAID ANNUAL REPORT 2007—2008

Students from local restaurants are taught how to prepare and handle meals at the Australia-Pacific Technical College (APTC), School of Tourism and Hospitality which opened in Port Vila, Vanuatu in July 2007. The APTC is an AusAID initiative funded for $150 million over four years and has four campuses—Samoa, Fiji, Papua New Guinea His Excellency T.M. Hamzah Thayeb, Indonesia’s Ambassador and Vanuatu. The APTC addresses critical skill to Australia, with Scott Dawson, Deputy Director General, needs in tourism, cookery, hospitality, automotive, AusAID at the official launch of AusAID’s new building at construction, electrical and manufacturing trades 255 London Circuit, Canberra City in August 2007 Photo: Rob Maccoll Photo: Eddison Photographics

Opposite » AusAID Director General, Bruce Davis and Australian National Audit Office signing officer, Simon Kidman at the signing of AusAID’s Financial Statements for 2007–08. The Australian National Audit Office provided a clean bill of health for the statements— a great year end result with a small departmental surplus and a 99 per cent program expenditure outcome. Photo: Angus Braithwaite

176 FINANCIAL STATEMENTS Section 4 AUSAID ANNUAL REPORT 2007–2008 4

SECTION

178 FINANCIAL STATEMENTS SECTION

179 AUSAID ANNUAL REPORT 2007—2008 4

SECTION

180 FINANCIAL STATEMENTS

INCOME STATEMENT for the year ended 30 June 2008

Notes 2008 2007 $'000 $'000 INCOME Revenue Revenue from Government 3A 108,506 93,162 Sale of goods and rendering of services 3B 562 277 Total Revenue 109,068 93,439

Gains Other gains 3C 412 235 Total Gains 412 235 TOTAL INCOME 109,480 93,674

EXPENSES Employee benefits 4A 66,023 58,128 Suppliers 4B 37,158 30,303 Depreciation and amortisation 4C 5,374 3,232 Finance costs 4D 614 1,767 Write-down and impairment of assets 4E 55 8 Losses from disposal of assets 4F 102 12 TOTAL EXPENSES 109,326 93,450

Surplus (Deficit) 154 224 SECTION

The above statement should be read in conjunction with the accompanying notes.

181 AUSAID ANNUAL REPORT 2007—2008

BALANCE SHEET as at 30 June 2008

Notes 2008 2007 $'000 $'000 ASSETS Financial Assets Cash and cash equivalents 5A 1,032 920 Trade and other receivables 5B 14,622 18,386 Total financial assets 15,654 19,306 Non-financial assets Leasehold improvements 6A 18,026 12,669 Infrastructure, plant and equipment 6B 6,155 5,523 Intangibles 6C 3,599 4,923 Other non-financial assets 6F 2,515 447 Total non-financial assets 30,295 23,562 TOTAL ASSETS 45,949 42,868

LIABILITIES Payables Suppliers 7A 3,186 4,926 Other payables 7B 14 3 Total payables 3,200 4,929 Provisions Employee provisions 8A 17,810 15,544 Other provisions 8B 4,617 4,319 Total provisions 22,427 19,863

4 TOTAL LIABILITIES 25,627 24,792

NET ASSETS 20,322 18,076

EQUITY Contributed equity 19,106 17,013 SECTION Reserves 374 374 Retained surpluses 842 689 TOTAL EQUITY 20,322 18,076

Current assets 17,727 19,753 Non-Current assets 28,222 23,115 Current liabilities 20,141 19,434 Non-Current liabilities 5,486 5,358

The above statement should be read in conjunction with the accompanying notes.

182 FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY As at 30 June 2008

Retained Surpluses Reserves Contributed Total Equity Equity 2008 2007 2008 2007 2008 2007 2008 2007 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Opening balance Balance carried forward 689 465 374 109 17,013 10,369 18,076 10,943 from previous period Opening balance adjustment (1) - - - - - (1) - – rounding Adjusted opening balance 688 465 374 109 17,013 10,369 18,075 10,943 Income and expenses Revaluation adjustment - - - 265 - - - 265 Sub-total income and - - - 265 - - - 265 expenses recognised directly in equity Surplus (Deficit) for the 154 224 - - - - 154 224 period Total income and 154 224 - 265 - - 154 489 expenses

Transactions with owners Contributions by Owners

Appropriation (equity - - - - 2,093 6,644 2,093 6,644 SECTION injection) Sub-total transactions - - - - 2,093 6,644 2,093 6,644 with owners Closing balance at 30 June 842 689 374 374 19,106 17,013 20,322 18,076

The above statement should be read in conjunction with the accompanying notes.

183 AUSAID ANNUAL REPORT 2007—2008

CASH FLOW STATEMENT for the year ended 30 June 2008

2008 2007 Notes $'000 $'000 OPERATING ACTIVITIES Cash received Goods and services 495 902 Appropriations 114,400 81,584 Net GST received 2,913 2,280 Total cash received 117,808 84,766 Cash used Employees 64,272 56,156 Suppliers 43,280 26,517 Total cash used 107,552 82,673 Net cash from (used by) operating activities 9 10,256 2,093

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment 59 - Total cash received 59 - Cash used Purchase of leasehold improvements 7,043 11,207 Purchase of infrastructure, plant and equipment 3,119 4,362 Purchase of intangibles 41 940 Total cash used 10,203 16,509 Net cash from (used by) investing activities (10,144) (16,509) 4

FINANCING ACTIVITIES Cash received Appropriations – contributed equity - 6,644 Total cash received - 6,644 Net cash from (used by) financing activities - 6,644 SECTION

Net increase (decrease) in cash held 112 (7,772)

Cash and cash equivalents at the beginning of the reporting period 920 8,692

Cash and cash equivalents at the end of the reporting period 5A 1,032 920

The above statement should be read in conjunction with the accompanying notes.

184 FINANCIAL STATEMENTS

SCHEDULE OF COMMITMENTS as at 30 June 2008

2008 2007 $'000 $'000 BY TYPE

Commitments receivable GST recoverable on commitments (8,731) (8,493) Total commitments receivable (8,731) (8,493)

Other commitments Operating leases1 112,584 105,297 Other commitments2 5,204 8,069 Total other commitments 117,788 113,366 Total commitments payable 117,788 113,366

Net commitments by type 109,057 104,873

BY MATURITY

Commitments receivable One year or less (1,022) (1,216) From one to five years (2,517) (2,057) Over five years (5,192) (5,220) Total commitments receivable (8,731) (8,493)

SECTION Operating lease commitments One year or less 14,165 13,648 From one to five years 39,597 30,832 Over five years 58,822 60,817 Total operating lease commitments 112,584 105,297

Other commitments 4 One year or less 4,860 8,058 From one to five years 344 11 Total other commitments 5,204 8,069 Net commitments by maturity 109,057 104,873 NB: Commitments are GST inclusive where relevant 1. Operating leases are effectively non-cancellable and comprise:

Nature of lease General description of leasing arrangement Domestic leases for office Lease payments are subject to annual increase in accordance with upwards movements accommodation in the Consumer Price Index. In some cases AusAID holds an option to extend office accommodation leases. Leases vary in duration from 1 to 15 years and lease payments are subject to the terms and conditions of each lease. Overseas leases for office The terms and conditions of these leases vary depending on the location of the property accommodation and the local market conditions. Leases vary in duration from 1 to 15 years, and are subject to market rental reviews.

The above schedule should be read in conjunction with the accompanying notes.

185 AUSAID ANNUAL REPORT 2007—2008

Nature of lease General description of leasing arrangement Overseas leases for residential The terms and conditions of these leases vary depending on the location of the property accommodation and the local market conditions. Leases vary in duration from 1 to 15 years, and are subject to market rental reviews. Leases for motor vehicles to AusAID leases motor vehicles to support its business activities. Payments are made senior executive officers monthly and are fixed at a constant rate for the duration of each lease. At the expiration of each lease the motor vehicles are disposed of by the lessor. Leases for computer AusAID leases business IT office equipment to support its business activities. Leases equipment are for various items of computer equipment and are generally for 3 years, with the risks associated with ownership held by the lessor.

2. Other commitments include commitments relating to provision of IT and general office services. 4

SECTION

The above schedule should be read in conjunction with the accompanying notes.

186 FINANCIAL STATEMENTS

SCHEDULE OF CONTINGENCIES as at 30 June 2008 There are no contingent assets and liabilities as at 30 June 2008 (nil: 30 June 2007). Refer to Note 10 for details of unquantified contingencies.

SECTION

The above schedule should be read in conjunction with the accompanying notes.

187 AUSAID ANNUAL REPORT 2007—2008

SCHEDULE OF ADMINISTERED ITEMS

2008 2007 Notes $'000 $'000

Income administered on behalf of Government for the year ended 30 June 2008

Revenue Non-taxation revenue Interest 14A 1,028 329 Total non-taxation revenue 1,028 329 Total revenues administered on behalf of Government 1,028 329

Gains Other gains 14B 148,556 1,341,130 Total gains administered on behalf of Government 148,556 1,341,130

Total income administered on behalf of Government 149,584 1,341,459

Expenses administered on behalf of Government for the year ended 30 June 2008 International development assistance 15A 1,859,030 1,428,545 Grants 15B 454,522 423,990 Concessional finance costs 15C 376,413 49,158 Write-down and impairment of assets 15D 118,809 174 Other expenses 15E 1,180 792 Total expenses administered on behalf of Government 4 2,809,954 1,902,659

SECTION

The above schedule should be read in conjunction with the accompanying notes.

188 FINANCIAL STATEMENTS

SCHEDULE OF ADMINISTERED ITEMS (continued)

2008 2007 Notes $'000 $'000

Assets administered of behalf of Government as at 30 June 2008

Financial assets Cash and cash equivalents 16A 5,751 21,903 Loans and Receivables 16B 30,934 19,161 Investments 16C 1,124,622 1,188,000 Total financial assets 1,161,307 1,229,064

Non-financial assets Leasehold improvements 16D 262 2,745 Infrastructure, plant and equipment 16E 2,307 2,798 Intangibles 16F 1,930 61 Other non-financial assets 16G 1,805 746 Total non-financial assets 6,304 6,350

Total assets administered on behalf of Government 1,167,611 1,235,414

Liabilities administered on behalf of Government as at 30 June 2008

Payables Grants 17A 315,011 271,090 SECTION Other payables 17B 676,610 687,859 Total payables 991,621 958,949

Provisions

Other provisions 8,306 7,115 4 Total provisions 17C 8,306 7,115

Total liabilities administered on behalf of Government 999,927 966,064

Current Assets 38,490 33,234 Non-Current Assets 1,129,121 1,202,180 Current Liabilities 377,910 481,762 Non-Current Liabilities 622,017 484,302

The above schedule should be read in conjunction with the accompanying notes.

189 AUSAID ANNUAL REPORT 2007—2008

SCHEDULE OF ADMINISTERED ITEMS (continued)

Administered cash flows 2008 2007 for the year ended 30 June 2008 Notes $'000 $'000

OPERATING ACTIVITIES Cash received Net GST received 52,250 59,571 Other 2,554 544 Total cash received 54,804 60,115 Cash used International development assistance 1,891,772 1,620,038 Grant payments 410,601 422,866 Concessional finance costs 262,035 49,115 Total cash used 2,564,408 2,092,019 Net cash from (used by) operating activities (2,509,604) (2,031,904)

INVESTING ACTIVITIES Cash received Proceeds from sale of property, plant and equipment and 2,539 - intangibles Total cash received 2,539 -

Cash used Purchase of property, plant, equipment 2,482 4,338 Purchase of concessional financial assets 65,306 8,247 Total cash used 67,788 12,585 Net cash from (used by) investing activities (65,249) (12,585) 4

FINANCING ACTIVITIES Net cash from or (used by) financing activities - -

Net increase (decrease) in cash held (2,574,853) (2,044,489)

SECTION Cash and cash equivalents at the beginning of the reporting period 21,903 69,563 Cash from Official Public Account for: - Appropriations 2,603,059 2,036,458 - Capital injections 14,075 22,563 Total cash from the Official Public Account 2,617,134 2,059,021

Cash to Official Public Account for: - GST transferred to the Official Public Account (52,604) (62,192) - Appropriations (5,829) - Total cash to the Official Public Account (58,433) (62,192) Cash and cash equivalents at end of reporting period 16A 5,751 21,903

The above schedule should be read in conjunction with the accompanying notes.

190 FINANCIAL STATEMENTS

SCHEDULE OF ADMINISTERED ITEMS (continued)

Administered commitments 2008 2007 as at 30 June 2008 Notes $’000 $’000

BY TYPE Commitments receivable GST recoverable on commitments (204,344) (282,305) Total commitments receivable (204,344) (282,305)

Other commitments Operating leases 2,268 6,477 Other commitments1 2,683,865 3,242,954 Total other commitments 2,686,133 3,249,431 Net commitments by type 2,481,789 2,967,126

BY MATURITY

Commitments receivable One year or less (99,720) (129,771) From one to five years (104,587) (145,937) Over five years (37) (6,597) Total commitments receivable (204,344) (282,305)

Operating lease commitments SECTION One year or less 539 1,799 From one to five years 910 4,166 Over five years 819 512 Total operating lease commitments 2,268 6,477

Other commitments 4 One year or less 1,250,478 1,499,240 From one to five years 1,432,977 1,671,657 Over five years 410 72,057 Total other commitments 2,683,865 3,242,954

Net administered commitments by maturity 2,481,789 2,967,126 NB: Commitments are GST inclusive where relevant

1. Other commitments represent the value of goods, services, grants and loans yet to be delivered (recognised) under agreements currently on issue within AusAID’s overseas development assistance program.

The above schedule should be read in conjunction with the accompanying notes.

191 AUSAID ANNUAL REPORT 2007—2008

SCHEDULE OF ADMINISTERED ITEMS (continued)

Administered Contingencies as at 30 June 2008 There are no Administered contingent assets and liabilities as at 30 June 2008 (nil: 30 June 2007). Refer to Note 20 for details of unquantified Administered contingencies.

SECTION

The above schedule should be read in conjunction with the accompanying notes.

192 FINANCIAL STATEMENTS

Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies...... - 15 - Note 2: Events after the Balance Date ...... - 25 - Note 3: Income ...... - 26 - Note 4: Expenses...... - 27 - Note 5: Financial Assets ...... - 29 - Note 6: Non-Financial Assets...... - 31 - Note 7: Payables...... - 36 - Note 8: Provisions...... - 37 - Note 9: Cash Flow Reconciliation ...... - 38 - Note 10: Contingent Liabilities and Assets...... - 38 - Note 11: Senior Executive Remuneration ...... - 39 - Note 12: Remuneration of Auditors...... - 39 - Note 13: Departmental Financial Instruments ...... - 40 - Note 14: Income Administered on Behalf of Government...... - 43 - Note 15: Expenses Administered on Behalf of Government...... - 44 - Note 16: Assets Administered on Behalf of Government...... - 45 -

Note 17: Liabilities Administered on Behalf of Government ...... - 53 - SECTION Note 18: Administered Reconciliation Table ...... - 54 - Note 19: Administered Financial Assets and Liabilities ...... - 55 - Note 20: Administered Contingent Liabilities and Assets ...... - 62 -

Note 21: Appropriations ...... - 63 - 4 Note 22: Special Accounts...... - 68 - Note 23: Compensation and Debt Relief...... - 70 - Note 24: Reporting of Outcomes ...... - 71 -

193 AUSAID ANNUAL REPORT 2007—2008

Note 1: Summary of Significant Accounting Policies 1.1 Objective of the Australian Agency for International Development The objective of Australia’s overseas aid programme is to assist developing countries to reduce poverty and achieve sustainable development, in line with Australia’s national interest. The Australian Agency for International Development (AusAID) administers the majority of Australia’s Official Development Assistance (ODA) for developing countries including the Australian Indonesian Partnership for Reconstruction and Development (AIPRD). The Agency is structured to meet two outcomes: Outcome 1: To assist developing countries to reduce poverty and achieve sustainable development, in line with Australia’s national interest. Outcome 2: Australia’s national interest advanced by implementing a partnership between Australia and Indonesia for reconstruction and development. AusAID activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by AusAID in its own right. Administered activities involve the management or oversight by the Agency, on behalf of the Government, of items controlled or incurred by the Government. Departmental activities are identified under three Outputs. Two outputs, Output 1.1 Policy and Output 1.2 Programme Management, relate to Outcome 1. One Output is identified for Outcome 2, being Output 2.1 Australia-Indonesia Partnership for Reconstruction and Development Management. Administered activities are identified under Outcome 1 Australia’s Aid Programme and Outcome 2 Australia-Indonesia Partnership for Reconstruction and Development Programme. The continued existence of AusAID in its present form and with its present programmes is dependent on Government policy and on continuing appropriations by Parliament for the Agency’s administration

4 and programmes.

1.2 Basis of Preparation of the Financial Report. The financial statements and notes are required by Section 49 of the Financial Management and Accountability Act 1997 and are a General Purpose Financial Report. The statements have been prepared in accordance with: SECTION • Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2007; and • Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period. The financial report has been prepared on an accruals basis and is in accordance with the historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Unless an alternative treatment is specifically required by an Accounting Standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments and the schedule of contingencies.

194 FINANCIAL STATEMENTS

Notes to and forming part of the Financial Statements

Unless alternative treatment is specifically required by an Accounting Standard, revenues and expenses are recognised in the income statement when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured. Administered revenues, expenses, assets and liabilities, and cash flows reported in the schedule of administered items and related notes are accounted for on the same basis and using the same policies as for departmental items, except where otherwise stated at Note 1.20. 1.3 Significant Accounting Judgements and Estimates No departmental accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period. In 2007 AusAID obtained professional valuation advice and refined the estimate of fair value for its administered financial instruments based upon new developments and information available. The effect of the change in estimate has been recognised in accordance with AASB 108 and AASB 139 prospectively by adjusting the carrying amount of the financial instruments disclosed at Note 16C with gains recognised at Note 14B for the comparative reporting period. The fair value of the administered financial instruments in 2007-08 has been determined on a basis consistent with that used in 2006-07. The fair value of the financial instruments reported in future periods will be affected by variables such as discount rates, exchange rates and possible impairment. The effect of changes to the assumptions used to value the financial instruments is disclosed at Note 19. 1.4 Statement of Compliance Adoption of new Australian Accounting Standard requirements

No accounting standard has been adopted earlier than the application date as stated in the standard. SECTION The following new standard is applicable to the current reporting period. Financial instrument disclosure AASB 7 Financial Instruments: Disclosures is effective for reporting periods beginning on or after 1 January 2007 (the 2007-08 financial year) and amends the disclosure requirements for financial

instruments. In general AASB 7 requires greater disclosure than that previously required. Associated 4 with the introduction of AASB 7 a number of accounting standards were amended to reference the new standard or remove the present disclosure requirements through 2005-10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]. These changes have no financial impact but will affect the disclosure presented in future financial reports. The following new standards, amendments to standards or interpretations for the current financial year have no material financial impact on AusAID: x 2007-4 Amendments to Australian Accounting Standards arising from ED 151 and Other Amendments and Erratum: Proportionate Consolidation; x 2007-7 Amendments to Australian Accounting Standards; and x UIG Interpretation 11 AASB 2 – Group and Treasury Share Transactions and 2007-1 Amendments to Australian Accounting Standards arising from AASB Interpretation 11.

195 AUSAID ANNUAL REPORT 2007—2008

Notes to and forming part of the Financial Statements

Future Australian Accounting Standard requirements The following new standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the impact of adopting these pronouncements when effective will have no material financial impact on future reporting periods:

AASB Reference Name AASB 3 Business Combinations AASB 8 Operating Segments AASB 101 Presentation of Financial Statements AASB 123 Borrowing Costs AASB 127 Consolidated and Separate Financial Statements AASB 1004 Contributions AASB 1049 Whole of Government and General Government Sector Financial Reporting AASB 1050 Administered Items AASB 1051 Land Under Roads AASB 1052 Disaggregated Disclosures AASB 2007-2 Amendments to Australian Accounting Standards arising from AASB Interpretation 12 [AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127, AASB 131 & AASB 139] AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101 AASB 2007-9 Amendments to Australian Accounting Standards arising from the Review of AASs 27, 29 and 31 AASB 2008-1 Amendments to Australian Accounting Standards Share based payments –

4 Vesting Conditions and Cancellations [AASB 2]

AASB 2008-2 Amendments to Australian Accounting Standards – Puttable Financial Instruments and Obligations Arising on Liquidation [AASB 7, AASB 101, AASB 132, AASB 139 & Interpretation 2] AASB 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127 [AASBs 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139 and Interpretations 9 & 107] SECTION Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities [amended by AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123] Interpretation 4 Determining whether an Arrangement contains a Lease Interpretation 12 Service Concession Arrangements [amended by AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123] Interpretation 13 Customer Loyalty Programmes Interpretation 14 AASB 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their interaction Interpretation 129 Service Concession Arrangements Disclosures Interpretation Contributions by owners Made to Wholly-Owned Public Sector Entities 1038

Other The following standards and interpretations have been issued but are not applicable to the operations of AusAID. AASB 1049 Whole of Government and General Government Sector Financial Reporting AASB 1049 specifies the reporting requirements for the General Government Sector. The FMO do not apply to this reporting.

196 FINANCIAL STATEMENTS

Notes to and forming part of the Financial Statements

1.5 Revenue Revenues from Government Amounts appropriated for departmental outputs appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue when AusAID gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance. Collectability of debts is reviewed at balance date. Provisions are made when collectability of the debt is no longer probable. Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement. 1.6 Gains Resources Received Free of Charge Resources received free of charge are recognised as gains when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another government agency as a consequence of a restructuring of administrative arrangements (Refer to Note 1.7).

Resources received free of charge are recorded as gains. SECTION Sale of Assets Gains from disposal of non-current assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner 4 Equity injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) are recognised directly in Contributed Equity in that year. Other distributions to owners The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. AusAID had no such distributions in 2007-08 (nil: 2006-07). 1.8 Employee Benefits Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled. Liabilities for ‘short-term employee benefits’ (as defined by AASB 119) and termination benefits due within twelve months of balance date are measured at their nominal amounts. The liability for wages and salaries recognised as at 30 June represents outstanding contributions for the final three days of the 2008 financial year. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

197 AUSAID ANNUAL REPORT 2007—2008

Notes to and forming part of the Financial Statements

Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of AusAID is estimated to be less than the annual entitlement for sick leave. In the case of programme support unit staff at posts, where the entitlement is vested, a liability has been recognised. The leave liabilities are calculated on the basis of employees’ remuneration, including AusAID’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by reference to the work of the Australian Government Actuary as at July 2006. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. The estimate of the liability for annual leave takes into account future pay increases where the increase affects the amount required to settle the obligation. Overseas allowances Overseas conditions of service entitlements for officers during their posting are expensed as incurred. At the reporting date AusAID did not recognise any liability for overseas allowances except as part of year end salary accruals. Separation and Redundancy Provision is made for separation and redundancy benefit payments. AusAID recognises a provision for separation and redundancy when it has developed a detailed formal plan and has informed those employees that will be affected by that plan that it will carry out those terminations of employment. 4 In some countries, programme support unit staff at overseas posts are entitled to separation benefits. The provision for the benefits has been classified as employee benefits. Superannuation Staff of AusAID are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap). SECTION The CSS and PSS are defined benefit schemes for the Commonwealth. The PSSap is a defined contribution scheme. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. AusAID contributes superannuation for overseas staff in compliance with local labour laws. AusAID makes employer contributions to the Employee Superannuation Scheme at rates determined by an actuary to be sufficient to meet the cost to the Government of the superannuation entitlements of AusAID’s employees. AusAID accounts for the contributions as if they were contributions to defined contribution plans. From 1 July 2005, new employees are eligible to join the PSSap scheme. The liability for superannuation recognised as at 30 June represents outstanding contributions for the final days of the financial year. 1.9 Leases A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

198 FINANCIAL STATEMENTS

Notes to and forming part of the Financial Statements

AusAID does not have any finance leases. Operating lease payments are expensed on a basis representative of the pattern of benefits derived from the leased assets being the contracted nominal amounts less any lease incentive allocated. Lease incentives are recognised as other payables and amortised over the period of the lease on a straight line basis. The net present value of future net outlays in respect of surplus space under non-cancellable lease agreements is expensed in the period in which the space becomes surplus. 1.10 Cash Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount. The balance of the departmental cash account is non-interest bearing. 1.11 Financial Assets Financial Assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured. Financial assets are assessed for impairment at each balance sheet date. AusAID classifies its financial assets in accordance with AASB 139: Financial Instruments: Recognition and Measurement in the following categories: x Available-for-sale financial assets; or x Loans and receivables. At 30 June 2007 and 2008 AusAID’s Departmental financial assets were all in the category of Loans and receivables. Accounting policy for Administered financial assets is provided at Note 1.20. SECTION Trade receivables For trade receivables an impairment allowance is made based upon a review of the collectability of those debts at the balance date. A provision is made where the collection of the debt is judged to be less rather than more likely. 94% of departmental receivables are with entities internal to the

Commonwealth and 6% of receivables are with entities external to the Commonwealth on 30 day credit terms. 4 1.12 Financial Liabilities Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised when contractual provisions of the instrument are established and fulfilled. Other financial liabilities Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. Supplier and other payables Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Accounting policy for Administered financial liabilities is provided at Note 1.20.

199 AUSAID ANNUAL REPORT 2007—2008

Notes to and forming part of the Financial Statements

1.13 Contingent Liabilities and Contingent Assets Contingent liabilities and assets are not recognised in the Balance Sheet but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable, and contingent liabilities are disclosed when settlement is greater than remote. 1.14 Acquisition of Assets Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor agency’s accounts immediately prior to the restructuring. 1.15 Infrastructure, Plant and Equipment Asset Recognition Threshold Purchases of infrastructure, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in

4 property leases taken up by AusAID where there exists an obligation to restore the property to its original condition. These costs are included in the value of AusAID’s leasehold improvements with a corresponding provision for the ‘makegood’ taken up. Revaluations Fair values for each class are determined as shown below: SECTION Asset class: Fair value measured at:

Leasehold improvements Depreciated replacement cost

Infrastructure, plant & equipment Market selling price

Following initial recognition at cost, infrastructure, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. The revaluation of leasehold improvements, infrastructure, plant and equipment to fair value was undertaken by the Australian Valuation Office effective at 30 June 2007. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through the surplus (deficit). Revaluation decrements for the same class of assets are recognised directly through the surplus (deficit) except to the extent that they reverse a previous revaluation increment for that class.

200 FINANCIAL STATEMENTS

Notes to and forming part of the Financial Statements

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. Depreciation Depreciable infrastructure, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to AusAID using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the lease term or 10 years. Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2008 2007 Leasehold Improvements Lesser of lease term Lesser of lease term & 10 years & 10 years Plant and Equipment 3 to 25 years 3 to 25 years Impairment All assets were assessed for impairment at 30 June 2008. Where indications of impairment exist the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if AusAID were deprived of the asset, its value in use is SECTION taken to be its depreciated replacement cost. 1.16 Intangibles AusAID’s intangibles comprise internally developed and commercially purchased software for internal use. These assets are carried at cost except for purchases costing less than $2,000, which are expensed

in the year of acquisition. 4 Software is amortised on a straight-line basis over its anticipated useful life. The useful life of AusAID’s software is 5 to 10 years (2006-07: 5 to 10 years). All software assets were assessed for indications of impairment as at 30 June 2008. 1.17 Taxation AusAID is exempt from all forms of taxation except fringe benefits tax and the goods and services tax (GST). Revenues, expenses and assets are recognised net of GST, except for: x where the amount of GST incurred is not recoverable from the Australian Tax Office; and x receivables and payables. 1.18 Foreign Currency Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date. Associated currency gains and losses are not material. 1.19 Insurance AusAID has insured for risks through the government’s risk management fund, Comcover. Workers compensation is insured through Comcare Australia.

201 AUSAID ANNUAL REPORT 2007—2008

Notes to and forming part of the Financial Statements

1.20 Reporting of Administered Activities Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related Notes. Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards. Administered Cash Transfers to and from Official Public Account Revenue collected by AusAID for use by the Government rather than AusAID is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by AusAID on behalf of the Government and reported as such in the Statement of Cash Flows in the Schedule of Administered Items and in the Administered Reconciliation Table. Thus the Schedule of Administered Items largely reflects the Government’s transactions, through AusAID, with parties outside the Government. Revenue All administered revenues are revenues relating to the course of ordinary activities performed by AusAID on behalf of the Australian Government. Interest is accrued on the amortised cost of loan receivables using the effective interest method (AASB 139). Expenses The difference between the fair value of a loan entered at below market rates and the present value of the future cash flows is expensed in the period in which the loan agreement is first recognised. 4 Grants AusAID administers a number of grants on behalf of the Australian Government. Grants are made to a number of international, United Nations (UN) and Commonwealth organisations. Grant and subsidy liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but SECTION payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied. Multi-year grants of a non-reciprocal nature are recorded as liabilities in the year the agreement is signed at fair value, using relevant Australian Government bond rates to discount the future cash flows to their present value. The value of the discount applied is recognised as concessional finance costs in subsequent years. Financial Assets AusAID administers material financial assets on behalf of the Australian Government. The Australian Government is the holder of these financial instruments, with the issuers being partner foreign governments and multi-lateral aid organisations including the Asian Development Fund (ADF) and the International Development Association (IDA). Financial instruments are recognised on a trade date basis. The financial instruments are held consistent with aid programme objectives.

202 FINANCIAL STATEMENTS

Notes to and forming part of the Financial Statements

Administered financial assets are recognised in accordance with AASB 139 as: 1. ‘loans and receivables’ where loan receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method. These are non-derivative financial assets with fixed or determinable payments which are not quoted in an active market. They are classified as non-current where the maturity date is greater than 12 months after balance date; and 2. non-monetary ‘available for sale’ debt instruments (investments) measured at fair value based upon professional valuation advice as to the estimated present value of the recoverable cash flows foregone. Foreign exchange translation differences on non-monetary financial assets are reported as part of the change in the fair value of the instruments. Changes in fair value of non-monetary available for sale financial assets are recognised in equity. Financial assets are assessed at each reporting date to determine whether there is any objective evidence of impairment. Where an ‘available for sale asset’ has been impaired, the cumulative loss is removed from equity and recognised in the Schedule of Administered Revenues and Expenses. The difference between the fair value of financial assets at acquisition and the fair value of the commitment entered is recognised as concessional finance cost in the year the commitment is first entered. The Australian Government holds these assets long term for policy reasons and the AASB 139 technical definition of ‘available for sale’ does not indicate intent to trade these assets. Financial Liabilities Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured. The liabilities are recognised at fair value. Gains and SECTION losses related to re-measurement of financial liabilities are recognised in the Schedule of Administered Revenues and Expenses. Aid Programme Accruals Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which the

liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Settlement is usually made net 30 days. 4 Multi-lateral Aid Agreements Multi-lateral aid agreements include agreements between the Australian Government and the International Development Association (IDA), Asian Development Fund (ADF), International Fund for Agricultural Development (IFAD), Global Environment Fund (GEF), Heavily Indebted Poor Countries (HIPC) and Montreal Protocol Multilateral Fund (MPMF). Accounting for these agreements is in accordance with the accounting policies detailed above. Nauru settlement The Nauru settlement has been recognised in accordance with the accounting policies above with an expense and liability recorded at the time of the settlement, with payment to be made by instalment until 2013-14.

203 AUSAID ANNUAL REPORT 2007—2008

Note 2: Events after the Balance Date AusAID is not aware of any material events occurring after balance date and therefore no adjustments have been made to these financial statements.

SECTION

204 FINANCIAL STATEMENTS

2008 2007 $'000 $'000 Note 3: Income

Revenue Note 3A: Revenue from Government

Appropriations for departmental outputs 108,506 93,162 Total revenues from Government 108,506 93,162

Note 3B: Sale of goods and rendering of services

Rendering of services to external entities 562 277 Total sale of goods and rendering of services 562 277

Gains Note 3C: Other gains

Resources received free of charge 112 91 Assets first found - 144 Gain on makegood 300 - Total other gains 412 235

SECTION

205 AUSAID ANNUAL REPORT 2007—2008

2008 2007 $'000 $'000 Note 4: Expenses

Note 4A: Employee benefits

Wages and salaries 50,344 43,259 Superannuation: Defined contribution plans 1,525 1,298 Defined benefit plans 6,785 5,777 Leave and other entitlements 6,171 6,090 Separation and redundancies 66 160 FBT employee expenses 1,132 1,544 Total employee benefits 66,023 58,128

Note 4B: Suppliers

Rendering of services - related entities 1,348 2,772 Rendering of services - external entities 21,216 14,270 Operating lease rentals: Minimum lease payments 14,349 12,948 Contingent rentals - - Sublease - - Workers compensation premiums 245 313 Total supplier expenses 37,158 30,303

Note 4C: Depreciation and amortisation

Depreciation: Leasehold improvements 1,837 510 Infrastructure, plant and equipment 2,058 1,279

SECTION Total depreciation 3,895 1,789 Amortisation: Intangibles 1,479 1,443 Total amortisation 1,479 1,443 Total depreciation and amortisation 5,374 3,232

206 FINANCIAL STATEMENTS

2008 2007 $'000 $'000 Note 4D: Finance costs

Employee provisions 515 436 Leasehold fitout makegood provision 99 1,331 Total finance costs 614 1,767

Note 4E: Write-down and impairment of assets

Asset write down from impairment of infrastructure, plant and 2 8 equipment Impairment of financial instruments 53 - Total write-down and impairment of assets 55 8

Note 4F: Losses from disposal of assets

Net losses from disposal of non-financial assets 102 12 Total net loss from disposal of assets 102 12

SECTION

207 AUSAID ANNUAL REPORT 2007—2008

2008 2007

$'000 $'000 Note 5: Financial Assets

Note 5A: Cash and cash equivalents

Cash on hand or on deposit 1,032 920 Total cash and cash equivalents 1,032 920

Note 5B: Trade and other receivables

Goods and services 919 664 Appropriations receivable for existing outputs 13,324 17,125 GST receivable from the Australian Taxation Office 432 597 Total trade and other receivables (gross) 14,675 18,386 Less: impairment allowance for goods and services (53) - Total trade and other receivables (net) 14,622 18,386

Receivables are represented by Current 14,622 18,386 Non-current - - Total trade and other receivables (net) 14,622 18,386

Receivables (gross) are aged as follows: 4

Not overdue 14,401 18,386 Overdue by: Less than 30 days 237 - 30 to 60 days 10 - 60 to 90 days - - More than 90 days 27 - SECTION Total receivables (gross) 14,675 18,386

The impairment allowance is aged as follows: Not overdue (36) - Overdue by: Less than 30 days - - 30 to 60 days - - 61 to 90 days - - More than 90 days (17) - Total impairment allowance (53) -

Appropriations receivable are appropriations controlled by AusAID but held in the OPA under the Government’s just-in-time drawdown arrangements introduced 1 July 2003.

208 FINANCIAL STATEMENTS

Reconciliation of the impairment allowance Movements in relation to 2008 Goods and Total Services

2008 2008 $’000 $’000 Opening Balance - - Amounts written off - - Amounts recovered and reversed - - Increase/decrease recognised in net surplus 53 53 Closing Balance 53 53

Movements in relation to 2007 Goods and Total Services

2007 2007 $’000 $’000 Opening Balance - - Amounts written off - - Amounts recovered and reversed - - Increase/decrease recognised in net surplus - - Closing Balance - - SECTION

209 AUSAID ANNUAL REPORT 2007—2008

Note 6: Non-Financial Assets 2008 2007

$'000 $'000 Note 6A: Leasehold improvements

Leasehold improvements: Leasehold improvements - fair value 16,779 2,602 Leasehold improvements - work in progress 3,108 10,093 - accumulated depreciation (1,861) (26)

Total leasehold improvements 18,026 12,669

No indicators of impairment were found for leasehold improvements.

Note 6B: Infrastructure, plant and equipment

Infrastructure, plant and equipment: Infrastructure, plant and equipment - fair value 8,336 5,645 - accumulated depreciation (2,181) (122)

Total infrastructure, plant and equipment 6,155 5,523

A revaluation of leasehold improvements, infrastructure, plant and equipment to fair value was undertaken by the Australian Valuation Office at 30 June 2007 and is used as the basis for ensuring carrying amounts for AusAID’s non- financial assets do not differ materially from that which would be determined using fair value at the reporting date. An annual stock take was again completed in 2007-08 and used to confirm the condition and existence of AusAID’s non- 4

financial assets. No revaluations were conducted in 2007-08.

No indicators of impairment were found for infrastructure, plant and equipment.

Note 6C: Intangibles

SECTION Computer software: Internally developed - in progress - - Internally developed - in use 4,812 4,812 - accumulated amortisation (2,190) (1,228) Externally acquired – at cost 4,403 4,249 - accumulated amortisation (3,426) (2,910)

Total intangibles (non-current) 3,599 4,923

No indicators of impairment were found for intangible assets.

210 FINANCIAL STATEMENTS

Note 6D: Analysis of leasehold improvements, infrastructure, plant and equipment

TABLE A – Reconciliation of the opening and closing balances of leasehold improvements, infrastructure, plant and equipment (2007-08). Item Leasehold Infrastructure, Plant Total Improvements & Equipment

$'000 $'000 $'000 As at 1 July 2007 Gross book value 12,695 5,645 18,340 Accumulated depreciation and impairment (26) (122) (148) Net book value 1 July 2007 12,669 5,523 18,192

Additions: By purchase 7,043 3,119 10,162 Revaluations through equity - - - Reclassification - - - Depreciation expense (1,837) (2,058) (3,895) Assets (net) transferred in/(out) 311 (428) (117) Disposals (net): Other disposals (160) (1) (161) Net book value 30 June 2008 18,026 6,155 24,181

Net book value as of 30 June 2008 represented by: Gross book value 19,887 8,336 28,223 Accumulated depreciation and impairment (1,861) (2,181) (4,042) Closing net book value 30 June 2008 18,026 6,155 24,181

SECTION

211 AUSAID ANNUAL REPORT 2007—2008

TABLE B – Reconciliation of the opening and closing balances of leasehold improvements, infrastructure, plant and equipment (2006-07). Item Leasehold Infrastructure, Plant Total Improvements & Equipment $'000 $'000 $'000 As at 1 July 2006 Gross book value 2,774 4,323 7,097 Accumulated depreciation and impairment (886) (1,810) (2,696) Net book value 1 July 2006 1,888 2,513 4,401

Additions: By purchase 11,207 4,362 15,569 Revaluations through equity 84 181 265 Reclassification - (234) (234) Depreciation expense (510) (1,279) (1,789) Impairments recognised in the operating result - (8) (8) Assets (net) transferred in/(out) - - - Disposals (net): Other disposals - (12) (12) Net book value 30 June 2007 12,669 5,523 18,192

Net book value as of 30 June 2007 represented by: Gross book value 12,695 5,645 18,340 Accumulated depreciation and impairment (26) (122) (148) Closing net book value 30 June 2007 12,669 5,523 18,192

SECTION

212 FINANCIAL STATEMENTS

Note 6E: Analysis of intangibles

TABLE A – Reconciliation of the opening and closing balances of intangibles (2007-08). Item Computer Computer Software Total Software Purchased Internally Developed $'000 $'000 As at 1 July 2007 Gross book value 4,812 4,249 9,061 Accumulated amortisation and impairment (1,228) (2,910) (4,138) Net book value 1 July 2007 3,584 1,339 4,923

Additions: By purchase or internally developed - 41 41 Reclassification - - - Amortisation expense (962) (517) (1,479) Assets (net) transferred in/(out) - 115 115 Disposals (net): Other disposals - - - Net book value 30 June 2008 2,622 978 3,600

Net book value as of 30 June 2008 represented by: Gross book value 4,812 4,404 9,216 Accumulated amortisation and impairment (2,190) (3,426) (5,616) Closing net book value 30 June 2008 2,622 978 3,600

SECTION

213 AUSAID ANNUAL REPORT 2007—2008

TABLE B – Reconciliation of the opening and closing balances of intangibles (2006-07). Item Computer Computer Software Total Software Purchased Internally Developed $'000 $'000 As at 1 July 2006 Gross book value 4,561 3,326 7,887 Accumulated amortisation and impairment (265) (2,430) (2,695) Net book value 1 July 2006 4,296 896 5,192

Additions: By purchase or internally developed 17 923 940 Revaluations and impairments through equity - - - Reclassification 234 - 234 Amortisation expense (963) (480) (1,443) Impairments recognised in the operating result - - - Assets (net) transferred in/(out) - - - Other movements - - - Disposals (net): Other disposals - - - Net book value 30 June 2007 3,584 1,339 4,923

Net book value as of 30 June 2007 represented by: Gross book value 4,812 4,249 9,061 Accumulated amortisation and impairment (1,228) (2,910) (4,138) Closing net book value 30 June 2007 3,584 1,339 4,923

SECTION

214 FINANCIAL STATEMENTS

2008 2007 $'000 $'000 Note 6F: Other non-financial assets

Prepayments 2,515 447 Total other non-financial assets 2,515 447

Prepayments are represented by: Current 2,073 447 Non-Current 442 - Total non-financial assets 2,515 447 All other non-financial assets are current assets

Note 7: Payables

Note 7A: Suppliers

Trade creditors 3,186 4,926 Total supplier payables 3,186 4,926

Settlement is usually made net 30 days All supplier payables are current liabilities

Note 7B: Other payables

GST payable to the Australian Taxation Office 14 3 SECTION Total other payables 14 3 Settlement is usually made net 30 days All other payables are current liabilities

215 AUSAID ANNUAL REPORT 2007—2008

2008 2007 $'000 $'000 Note 8: Provisions

Note 8A: Employee provisions

Salaries and wages 533 401 Leave 14,833 12,932 Superannuation 62 56 Other 2,382 2,155 Total employee provisions 17,810 15,544

Employee provisions are represented by: Current 15,020 13,421 Non-current 2,790 2,123 Total employee provisions 17,810 15,544

The classification of current includes amounts for which there is not an unconditional right of deferral of one year, hence in the case of employee provisions the above classification does not equal the amount expected to be settled within one year of reporting date. Employee provisions expected to be settled in one year were $5,832,000 (2006-07: $7,667,000) and in excess of one year were $11,978,000 (2006-07: $7,877,000).

2008 2007 $'000 $'000 Note 8B: Other provisions

4 Makegood provision 1,601 1,643 Lease incentives 3,016 2,676 Total other provisions 4,617 4,319

Other provisions are represented by: Current 1,935 1,084

SECTION Non-current 2,682 3,235 Total other provisions 4,617 4,319

Makegood Lease incentives Total provision $'000 $'000 $'000 Carrying amount 1 July 2007 1,643 2,676 4,319 Additional provisions made 184 340 524 Amounts used (25) - (25) Amounts reversed (300) - (300) Unwinding of discount or change in discount rate 99 - 99 Closing balance 1,601 3,016 4,617

216 FINANCIAL STATEMENTS

2008 2007 $'000 $'000 Note 9: Cash Flow Reconciliation

Reconciliation of cash and cash equivalents as per balance sheet to cashflow statement: Operating result 154 224 Depreciation/amortisation 5,374 3,232 Net write down of non-financial assets 2 8 Losses from disposal of assets 102 12 (Increase) / decrease in net receivables 5,857 (11,284) (Increase) / decrease in other non-financial assets (2,068) (167) Increase / (decrease) in employee provisions 2,266 2,409 Increase / (decrease) in supplier payables (1,740) 3,529 Increase / (decrease) in other provisions 298 4,129 Increase / (decrease) in other payables 11 1 Net cash from / (used by) operating activities 10,256 2,093

Note 10: Contingent Liabilities and Assets

Quantifiable contingencies At 30 June 2008 AusAID did not have any quantifiable contingencies.

Unquantifiable contingencies In 1999-2000, a legal action was commenced against AusAID relating to an injury sustained by a staff member in an AusAID building. It is not possible to estimate the amounts of any eventual payments that may be required in relation to this claim. SECTION

217 AUSAID ANNUAL REPORT 2007—2008

Note 11: Senior Executive Remuneration 2008 2007 The number of senior executives who received or were due to receive total No. No. remuneration of $130,000 or more:

$130,000 to $144,999 1 - $145,000 to $159,999 3 1 $160,000 to $174,999 4 6 $175,000 to $189,999 6 3 $190,000 to $204,999 3 - $205,000 to $219,999 2 1 $220,000 to $234,999 - 2 $235,000 to $249,999 - - $250,000 to $264,999 1 - $265,000 to $279,999 - 1 $280,000 to $294,999 - - $295,000 to $309,999 1 - $310,000 to $324,000 1 1

Total 22 15

2008 2007 $ $ The aggregate amount of total remuneration of senior executives 4,225,756 2,976,008 shown above.

The aggregate amount of separation and redundancy/termination Nil Nil benefit payments during the year to senior executives shown

4 above.

Note 12: Remuneration of Auditors

Financial statement audit services are provided free of charge to AusAID.

SECTION The fair value of the services provided was 112,000 91,000 No other services were provided by the Auditor-General

218 FINANCIAL STATEMENTS

2008 2007 $'000 $'000 Note 13: Departmental Financial Instruments

Note 13A: Categories of financial instruments

Financial Assets Cash and cash equivalents 1,032 920 Loans and receivables financial assets: Goods and services (net) 866 664 GST receivable from the Australian Tax Office 432 597 Carrying amount of financial assets 2,330 2,181

Financial Liabilities At amortised cost: Trade creditors 3,186 4,926 GST Payable to the ATO 14 3 Carrying amount of financial liabilities 3,200 4,929

Note 13B: Net income and expense from financial liabilities

Financial liabilities - at amortised cost Interest expense - - Exchange gains/(losses) (8) (2) Gain/(loss) on disposal - - Net gain/(loss) from financial liabilities (8) (2) SECTION

219 AUSAID ANNUAL REPORT 2007—2008

Note 13C: Fair values of financial instruments

Notes Carrying Fair Value Carrying Fair Value Amount 2008 2008 Amount 2007 2007

$’000 $’000 $’000 $’000 Loans and receivables financial assets: Goods and services (net) 866 866 664 664 GST receivable from the ATO 432 432 597 597 Total 1,298 1,298 1,261 1,261 At amortised cost: Trade creditors 3,186 3,186 4,926 4,926 GST payable to the ATO 14 14 3 3 Total 3,200 3,200 4,929 4,929

NB AusAID had no departmental financial assets or liabilities that were designated at fair value through profit and loss, classified as available for sale nor reclassified between categories in 2007-08.

Note 13D: Credit risk Credit risk is the possibility that a debtor will not repay some or all of a receivable in a timely manner, causing loss to AusAID. The maximum exposure AusAID has to credit risk at the reporting date in relation to each class of recognised financial assets is the carrying amount of those assets indicated in the Balance Sheet. AusAID has no significant exposures to concentrations of credit risk. The following table illustrates AusAID’s gross exposure to credit risk, excluding any collateral or credit enhancements.

2008 2007 Financial assets $’000 $’000 4

Loans and receivables financial assets: Goods and services (net) 866 664 GST receivable from the ATO 432 597 Total 1,298 1,261 Financial liabilities At amortised cost: SECTION Trade creditors 3,186 4,926 GST payable to the ATO 14 3 Leasehold payables - - Total 3,200 4,929

Credit quality of financial instruments not past due or individually determined as impaired Not Past due Not Past due Past due or Past due or Nor Impaired Nor Impaired Impaired Impaired 2008 2007 2008 2007 $’000 $’000 $’000 $’000 Loans and receivables financial assets

Goods and services (net) 866 664 53 - GST receivable from the ATO 432 597 - - Total 1,298 1,261 53 -

220 FINANCIAL STATEMENTS

Note 13E: Liquidity Risk AusAID’s activities expose it to normal commercial financial risk. The probability of AusAID encountering difficulties in meeting its Departmental financial obligations as they fall due is less than remote, noting that the continued existence of AusAID in its present form and with its present programmes is dependent on Government policy and on continuing appropriations by Parliament for the Agency’s administration and programmes.

The following table illustrates maturities for financial liabilities On demand Within 1 year 1 to 5 years >5 years 2008 2008 2008 2008 $’000 $’000 $’000 $’000 Trade creditors - 3,186 - - GST payable to the ATO - 14 - - Total - 3,200 - -

The following table illustrates maturities for financial liabilities On demand Within 1 year 1 to 5 years >5 years 2007 2007 2007 2007 $’000 $’000 $’000 $’000 Trade creditors - 4,926 - - GST payable to the ATO - 3 - - Total - 4,929 - -

Note 13F: Market Risk AusAID holds basic Departmental financial instruments that do not expose AusAID to either interest or price risk. Credit terms for both receivables & payables are normally 30 days net.

SECTION

221 AUSAID ANNUAL REPORT 2007—2008

Notes to the Schedule of Administered Items

2008 2007 $'000 $'000 Note 14: Income Administered on Behalf of Government

Revenue

Note 14A: Interest

Loan and receivable discount unwinding 1,028 329 Total interest revenue 1,028 329

Total revenues administered on behalf of Government 1,028 329

Note 14B: Other gains

Gains from remeasuring ‘available for sale’ financial assets - 1,188,000 Gains from remeasuring financial liabilities – at fair value through 147,970 - profit & loss Gains from remeasuring financial liabilities – at amortised cost - 151,856 Gains from asset sales 11 - Assets first found 575 1,274 Other gains - - Total other gains 148,556 1,341,130

4 Total gains administered on behalf of Government 148,556 1,341,130

The Australian Government holds financial instruments long term for policy reasons. Any gains (and if relevant write downs) on these financial instruments are recognised in accordance with the accounting policies stated at note 1. (Refer also to Notes 1.20 and Note 19).

SECTION

222 FINANCIAL STATEMENTS

2008 2007 $'000 $'000 Note 15: Expenses Administered on Behalf of Government

Note 15A: International development assistance

Development cooperation programme 1,859,030 1,428,545

Note 15B: Grants

Overseas 454,522 423,990

Note 15C: Concessional finance costs

Discount expense for liabilities at fair value through profit & loss 290,408 - Discount expense for liabilities at amortised cost 85,774 48,999 Make-good provision 97 43 Employee provisions 134 116 Total finance costs 376,413 49,158

Note 15D: Write-down and impairment of assets

Impairment of financial instruments – ‘available for sale’ 117,597 - financial assets Impairment of financial instruments – amortised cost 1,143 - Stock take write-offs 69 174 SECTION Total write-down and impairment of assets 118,809 174

Note 15E: Other expenses

Depreciation of non-financial assets

Leasehold improvements 7 41 4 Infrastructure, plant and equipment 1,160 746 Total depreciation 1,167 787 Amortisation: Intangibles 13 5 Total amortisation 13 5

Total depreciation and amortisation 1,180 792

223 AUSAID ANNUAL REPORT 2007—2008

2008 2007 $'000 $'000 Note 16: Assets Administered on Behalf of Government

Financial Assets

Note 16A: Cash and cash equivalents

Cash on hand or on deposit 5,751 21,903 Total cash and cash equivalents 5,751 21,903

Note 16B: Loans and receivables

Advances and loans: Loan receivable 20,691 8,576 Other receivables: GST receivable from the Australian Tax Office 9,593 6,624 Interest receivable - - Other receivables 1,898 4,261 Total receivables 32,182 19,461 Less: impairment allowance – Other receivables (1,248) (300) Total receivables (net) 30,934 19,161

Receivables are aged as follows: Not overdue 30,519 17,038 Overdue by:

4 Less than 30 days 60 555

31 to 60 days 231 82 61 to 90 days 2 23 More than 90 days 1,370 1,763 Total receivables (gross) 32,182 19,461

SECTION The impairment allowance is aged as follows: Not overdue - - Overdue by: Less than 30 days - - 30 to 60 days - - 61 to 90 days - - More than 90 days (1,248) (300) Total impairment allowance (1,248) (300)

Administered appropriation receivables are not recognised, in accordance with FMO Section 102, as the earliest point of recognition for administered appropriations is when appropriations are drawn down. Administered appropriation balances are disclosed at Note 21 and Note 22 as ‘appropriations receivable’ and ‘cash on call held in the OPA’ respectively with no change to the comparative amounts.

224 FINANCIAL STATEMENTS

Reconciliation of the impairment allowance Movements in relation to Taxation Advances and Other receivables Total 2008 Receivables Loans 2008 2008 2008 2008 $’000 $’000 $’000 $’000 Opening Balance - - 300 300 Amounts written off - - (195) (195) Amounts recovered and - - - - reversed Increase/decrease recognised - - 1,143 1,143 in net surplus Closing Balance - - 1,248 1,248

Movements in relation to Taxation Advances and Other receivables Total 2007 Receivables Loans 2007 2007 2007 2007 $’000 $’000 $’000 $’000 Opening Balance - - 150 150 Amounts written off - - - - Amounts recovered and - - - - reversed Increase/decrease recognised - - 150 150 in net surplus Closing Balance - - 300 300

SECTION

225 AUSAID ANNUAL REPORT 2007—2008

2008 2007 $'000 $'000 Note 16C: Investments Non-monetary ‘available for sale’ debt instrument – fair value 1,124,622 1,188,000 Total Investments 1,124,622 1,188,000

The Australian Government holds these investments long term for policy reasons. The AASB 139 technical definition ‘available for sale’ does not indicate an intention to trade these investments. The investment represents subscription based memberships rights (not control) held by the Australian Government in accordance with the articles of association for the International Development Association (IDA) and the Asian Development Fund (ADF). There is no observable market value for these investments and fair value has been determined through professional valuation advice (Refer also to Notes 1.3, 1.20 and Note 19).

SECTION

226 FINANCIAL STATEMENTS

2008 2007 $’000 $’000 Note 16: Assets Administered on Behalf of Government (continued)

Non financial assets

Note 16D: Leasehold improvements

Leasehold improvements - fair value 269 2,786 - accumulated depreciation (7) (41) Total leasehold improvements 262 2,745

No indicators of impairment were found for leasehold improvements.

Note 16E: Infrastructure, plant and equipment

Infrastructure, plant and equipment - fair value 3,468 2,810 - accumulated depreciation (1,161) (12) Total infrastructure, plant and equipment (non-current) 2,307 2,798

A revaluation of leasehold improvements, infrastructure, plant and equipment to fair value was undertaken by the Australian Valuation Office at 30 June 2007. No indicators of impairment were found for infrastructure, plant and equipment. SECTION

Note 16F: Intangibles

Computer software at cost: Internally developed – in progress 1,882 -

Internally developed – in use - - 4 Purchased 66 66 Accumulated amortisation (18) (5) Accumulated impairment write-down - - Total intangibles 1,930 61

No indicators of impairment were found for intangible assets.

Note 16G: Other non-financial assets

Prepayments 1,805 746 Total other non-financial assets 1,805 746

227 AUSAID ANNUAL REPORT 2007—2008

Note 16H: Analysis of leasehold improvements, infrastructure, plant and equipment

Table A: Reconciliation of the opening and closing balances of leasehold improvements, infrastructure, plant and equipment (2007-08)

Item Leasehold Infrastructure, plant Total improvements and equipment $’000 $’000 $’000 As at 1 July 2007

Gross book value 2,786 2,810 5,596 Accumulated depreciation and impairment (41) (12) (53) Net book value 1 July 2007 2,745 2,798 5,543 Additions: By purchase 223 377 600

Revaluations and impairment through equity - - - Reclassification - - - Depreciation expense (7) (1,160) (1,167) Impairments recognised in operating result - - - Other movements - 376 376

Disposals: Other disposals (2,699) (84) (2,783) Net book value at 30 June 2008 262 2,307 2,569

Net book value as of 30 June 2008 4 represented by: Gross book value 269 3,469 3,738 Accumulated depreciation and impairment (7) (1,162) (1,169) Net book value 30 June 2008 262 2,307 2,569

SECTION

228 FINANCIAL STATEMENTS

Table B: Reconciliation of the opening and closing balances of leasehold improvements, infrastructure, plant and equipment (2006-07)

Item Leasehold Infrastructure, plant Total improvements and equipment $’000 $’000 $’000 As at 1 July 2006

Gross book value - 3,139 3,139 Accumulated depreciation and impairment - (1,360) (1,360) Net book value 1 July 2006 - 1,779 1,779 Additions: By purchase 2,786 1,487 4,273

Revaluations and impairment through equity - 454 454 Reclassification - - - Depreciation expense (41) (746) (787) Impairment recognised in operating result - - - Other movements - (176) (176)

Disposals: Other disposals - - - Net book value at 30 June 2007 2,745 2,798 5,543

Net book value as of 30 June 2007 represented by:

Gross book value 2,786 2,810 5,596 SECTION Accumulated depreciation and impairment (41) (12) (53) Net book value 30 June 2007 2,745 2,798 5,543

229 AUSAID ANNUAL REPORT 2007—2008

Note 16I: Analysis of intangibles Table A: Reconciliation of the opening and closing balances of intangibles (2007-08)

Item Computer software Computer software Total internally developed purchased $’000 $’000 $’000 As at 1 July 2007

Gross book value - 66 66 Accumulated amortisation and - (5) (5) impairment Net book value 1 July 2007 - 61 61 Additions: by purchase 1,882 - 1,882

Reclassification - - - Amortisation expense - (13) (13) Impairments recognised in the - - - operating result Other movements - - -

Disposals: Other disposals - - -

Net book value at 30 June 2008 1,882 48 1,930

4 Net book value as of 30 June 2008 represented by: Gross book value 1,882 66 1,948 Accumulated amortisation and - (18) (18) impairment Net book value 30 June 2008 1,882 48 1,930

SECTION

230 FINANCIAL STATEMENTS

Note 16I: Analysis of intangibles (continued) Table B: Reconciliation of the opening and closing balances of intangibles (2006-07)

Item Computer software Computer software Total internally developed purchased $’000 $’000 $’000 As at 1 July 2006

Gross book value - - - Accumulated amortisation and - - - impairment Net book value 1 July 2006 - - - Additions: by purchase - 66 66

Reclassification - - - Amortisation expense - (5) (5) Impairments recognised in the - - - operating result Other movements - - -

Disposals: Other disposals - - -

Net book value at 30 June 2007 - 61 61

SECTION Net book value as of 30 June 2007 represented by: Gross book value - 66 66 Accumulated amortisation and - (5) (5) impairment

Net book value 30 June 2007 - 61 61 4

231 AUSAID ANNUAL REPORT 2007—2008

2008 2007 $’000 $’000 Note 17: Liabilities Administered on Behalf of Government

Payables

Note 17A: Grants Overseas – amortised cost 315,011 271,090 Total grants payable 315,011 271,090

Grants payable are represented by: Current 69,214 86,528 Non-Current 245,797 184,562 Total grants payable 315,011 271,090

Note 17B: Other payables Development Cooperation Programme – amortised cost 194,485 687,859 Development Cooperation Programme – fair value through profit 482,125 - & loss Total other payables 676,610 687,859

Other payables are represented by: Current 301,024 388,837 Non-Current 375,586 299,022 Total other payables 676,610 687,859

All grants and subsidies are to entities that are not part of the Australian Government. Settlement is usually made according to the terms and conditions of each grant.

Note 17C: Other provisions Makegood provision 112 246

SECTION Employee provisions 8,194 6,869 Total other provisions 8,306 7,115

Other provisions are represented by: Current 7,672 6,397 Non-Current 634 718 Total other provisions 8,306 7,115

232 FINANCIAL STATEMENTS

2008 2007 $’000 $’000 Note 18: Administered Reconciliation Table

Opening administered assets less administered liabilities as at 1 July 269,350 (1,166,706) Opening balance adjustment – rounding 3 - Administered income 149,584 1,341,459 Administered expenses (2,809,954) (1,902,659) Administered transfers to/from Australian Government: Annual Appropriations Administered Items 2,603,059 2,036,431 Transfers to OPA (5,829) - Return of GST Appropriations to the OPA (52,604) (62,192) Administered Revaluations taken to/(from) Reserves - 454 Equity injections 14,075 22,563 Closing administered assets less administered liabilities as at 30 June 167,684 269,350

SECTION

233 AUSAID ANNUAL REPORT 2007—2008

2008 2007 $’000 $’000 Note 19: Administered Financial Assets and Liabilities

Note 19A: Categories of financial assets and liabilities

Financial Assets Cash and cash equivalents 5,751 21,903 Loans and receivables financial assets GST receivable from the Australian Taxation Office 9,593 6,624 Loan receivables 20,691 8,576 Other receivables net 650 3,961 Total loans and receivables financial assets 30,934 19,161

Available for sale financial assets Non-monetary available for sale debt instrument - fair value 1,124,622 1,188,000 Carrying amount of financial assets 1,161,307 1,229,064

Financial Liabilities At amortised cost IDA 189,358 396,971 ADF 41,106 270,336 IFAD - 671 MPMF - 3,819 GEF 63,341 78,138 HIPC 3,870 16,761 Naru Settlement 17,336 20,111

4 Development cooperation Programme 194,485 172,142

Total financial liabilities at amortised cost 509,496 443,232

At fair value through profit and loss IDA 374,629 - ADF 107,496 -

SECTION Total financial liabilities at fair value through profit and loss 482,125 -

Carrying amount of financial liabilities 991,621 958,949

234 FINANCIAL STATEMENTS

2008 2007 $’000 $’000 Note 19B: Net income and expense from financial assets and liabilities

Financial assets

Loans and receivables Interest revenue 1,028 329 Exchange gains/(loss) - - Impairment (1,143) - Gains/(loss) on disposal - - Net gain/(loss) from loans and receivables (115) 329

Available for sale Interest revenue - - Exchange gains/(loss) - - Gains recognised in income - 1,188,000 Amounts reversed from equity: Impairment (117,597) - Net gain/(loss) available for sale (117,597) 1,188,000

Net gain/(loss) from financial assets (117,712) 1,188,329

Financial liabilities

Fair value through profit and loss – held for trading Interest expense (290,408) - SECTION Exchange gains/(losses) - - Gains recognised in income 147,970 - Gain/(loss) on disposal - - Net gain/(loss) at fair value through profit and loss – held for trading (142,438) -

Financial liabilities – at amortised cost 4 Interest expense (85,774) 49,158 Exchange gains/(losses) - - Gains recognised in income - 151,856 Gain/(loss) on disposal - - Net gain/(loss) from financial liabilities – at amortised cost (85,774) 201,014

Net gain/(loss) from financial liabilities (228,212) 201,014

235 AUSAID ANNUAL REPORT 2007—2008

- - 2007 8,576 $’000 10,585 271,090 687,859 958,949 1,188,000 1,207,161 Aggregate Fair Value Aggregate Fair

- - 2007 8,576 $’000 10,585 271,090 687,859 958,949 1,188,000 1,207,161 Amount Total Carrying

- 2008 $’000 10,243 20,691 315,011 194,485 482,125 991,621 1,124,622 1,155,556 Aggregate Fair Value Aggregate Fair

- 2008 $’000 10,243 20,691 315,011 194,485 482,125 991,621 1,124,622 1,155,556 Amount 4

Total Carrying Notes 16B 16B 16B 16C 17A 17B 17B SECTION

Note 19C: Fair values of financial instruments Financial Assets (net) goods and services Receivables for Other receivables Loan receivable for sale available Investments – assets Total financial Financial Liabilities cost amortised at - Grants payable costs amortised at – Other payables and loss through profit through at fair value Other payables – liabilities (recognised) financial Total

236 FINANCIAL STATEMENTS

Total Total $’000 $’000 1,124,622 1,188,000

$’000 $’000

1,124,622 1,188,000 Non-market inputs Non-market inputs Non-market inputs trade these assets. trade these assets.

- - $’000 $’000 able market inputs to determine a fair value. value. a fair determine to able market inputs value. a fair determine to able market inputs Market inputs Market inputs ale) carried at fair value (above) whether fair value was obtained by by value was obtained fair whether (above) at fair value carried ale) by value was obtained fair whether (above) at fair value carried ale) Valuation technique utilising Non-market inputs inputs Non-market utilising technique Valuation Valuation technique utilising Non-market inputs Valuation technique utilising Non-market

- - $’000 $’000

Market values Market values asons only and there is no intention to is no intention asons only and there to is no intention asons only and there SECTION Market values values Market

ble for sale’ financial assets for policy re assets for financial ble for sale’ policy re assets for financial ble for sale’ value of financial instruments - 2007 - financial instruments value of - 2008 determining fair used for Method instruments Valuation value of financial s for loss or available profit and through (those at fair value liabilities and assets those for identifies table The following uses non-observ that or one market transactions, observable that employs technique a valuation or by market prices to reference assets at fair Financial value value – fair instrument debt Non-monetary available for sale ‘availa holds the Australian Government The Valuation used for determining fair Method s for loss or available profit and through (those at fair value liabilities and assets those for identifies table The following uses non-observ that or one market transactions, observable that employs technique a valuation or by market prices to reference assets at fair Financial value value – fair instrument debt Non-monetary available for sale ‘availa holds the Australian Government The

237 AUSAID ANNUAL REPORT 2007—2008

Note 19D: Credit risk Credit risk is the possibility that a debtor will not repay all or a portion of a loan or will not repay in a timely manner and will therefore cause a loss to AusAID. AusAID has exposure to concentrations of credit risk with regard to the ‘Loan Receivable’ and the ‘Non-monetary available for sale debt instrument at fair value’. The maximum exposure AusAID has to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Schedule of Administered Assets and Liabilities.

The following table illustrates AusAID’s gross exposure to credit risk, excluding

any collateral or credit enhancements. 2008 2007 $'000 $'000 Financial assets GST receivable from the ATO 9,593 6,624 Other receivables (net) 650 3,961 Loan receivable 20,691 8,576 Available for sale 1,124,622 1,188,000 Total financial assets 1,155,556 1,207,161 Financial liabilities At amortised cost 509,496 958,949 Through the profit and loss 482,125 - Total financial liabilities 991,621 958,949

Credit quality of financial instruments not past due or individually determined as impaired

Not Past Due Not Past Due Past due or Past due or

Nor Impaired Nor Impaired impaired impaired

2008 2007 2008 2007 4 $'000 $'000 $'000 $'000 GST receivable from the ATO 9,593 6,624 - - Other receivables (net) 235 - 415 2,138 Loan receivable 20,691 8,576 - - Available for sale 1,124,622 1,188,000 - - SECTION Total 1,155,141 1,203,200 415 2,138

Ageing of financial assets that are past due and not individually determined

as impaired for 2008 0 to 30 31 to 60 61 to 90 90+ days days days days Total $’000 $’000 $’000 $’000 $’000 GST receivable from the ATO - - - - - Other receivables (net) 60 231 2 122 415 Loan receivable - - - - - Available for sale - - - - - Total 60 231 2 122 415

238 FINANCIAL STATEMENTS

Ageing of financial assets that are past due and not individually determined as impaired for 2007 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000 Receivables for goods and services net - - - - - Other receivables (net) 555 82 23 1,463 2,123 Loan receivable - - - - - Available for sale - - - - - Total 555 82 23 1,463 2,123

Note 19E: Liquidity risk The continued existence of AusAID in its present form and with its present programmes is dependent on Government policy and on continuing appropriations by Parliament for the Agency’s administration and programmes. The probability of the Government encountering difficulties meeting its Administered financial obligations is less than remote.

The following tables illustrates the maturities for financial liabilities.

On within 1 1 to 5 > 5 demand year years years Total 2008 2008 2008 2008 2008 $'000 $'000 $'000 $'000 $'000 Financial Liabilities - 370,242 563,913 57,466 991,621 Total - 370,242 563,913 57,466 991,621

On within 1 1 to 5 > 5 demand year years years Total SECTION 2007 2007 2007 2007 2007 $'000 $'000 $'000 $'000 $'000 Financial Liabilities - 475,365 441,577 42,007 958,949 Total - 475,365 441,577 42,007 958,949

239 AUSAID ANNUAL REPORT 2007—2008

Note 19F: Market risk Market risk is defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. The following sensitivity analysis discloses the effect that a reasonable possible change in each risk variables would have on AusAID’s Administered income and expenses.

Change in Effect on Net income risk and variable expenses Equity 2008 2008 $’000 $’000 Risk variable Currency risk Increase of 13% (259,528) (259,528) Decrease of 13% 481,981 481,981 Interest rate risk Increase of 3% (2,968) (2,968) Decrease of 3% 2,975 2,975

Change in Effect on Net income risk and variable expenses Equity 2007 2007 $’000 $’000 Risk variable

4 Currency risk

Increase of 13 % (276,108) (276,108) Decrease of 13% 505,515 505,515 Interest rate risk Increase of 3% (3,454) (3,454) Decrease of 3% 3,465 3,465

SECTION

240 FINANCIAL STATEMENTS

Note 20: Administered Contingent Liabilities and Assets

Administered Contingent Liabilities

Quantifiable Administered Contingencies As at 30 June 2008 AusAID did not have any quantifiable Administered contingencies. Unquantifiable Administered Contingencies At 30 June 2008 AusAID did not have any unquantifiable Administered contingencies. SECTION

241 AUSAID ANNUAL REPORT 2007—2008

------2007 $'000 6,740 (1,495) 1,858,352 1,266,428 1,266,428

Total ------12 2008 (410) 6,114 $'000 (28,542) 2,597,304 1,080,540 1,080,540

------2007 $'000 93,162 12,853 12,853

9 ------12 2008 (410) $'000 18,375 18,375 108,904 Departmental Outputs inance Minister’s 2008 Section 8 Determination. An amount Determination. 8 2008 Section inance Minister’s er PAE Statements 2007-08 Pages 88 and 89). 88 and 89). er PAE Statements 2007-08 Pages

------134 134 2007 (134) $'000 3,370

------404 404 Outcome 2 2008 (394) 4,482 $'000

------2007 $'000 6,740 4 (1,361)

1,761,820 1,253,441 1,253,441 Administered Expenses Administered Expenses ------Outcome 1

2008 6,105 $'000 (28,148) SECTION 2,483,918 1,061,761 1,061,761

1 Particulars Appropriation Act (No.1) Appropriation Act (No.3) Appropriation lapsed (Appropriation Administered appropriation 8) Act section (Appropriation Act appropriations of Reductions 9) section Advance to the Finance Minister (Appropriation 11) Act section Comcover receipts (Appropriation Act section12) Financial Assistance) Bill (Tsunami Appropriation and Financial Assistance (Tsunami Appropriation – Bill 2004-2005 Partnership Australia – Indonesia Finance Minister the adjustments determined by (FMA s30) Refunds credited Appropriation Act (No. 1) 2007-08 includes an amount of $255.535 million that is expected to be formally reduced through the F the through reduced formallyto be is expected that million $255.535 amount of an includes Act (No. 1) 2007-08 Appropriation of $255.535 million was included in Appropriation Act (No.4) 2007-08 (see also Note 21B) at Portfolio Additional Estimates (Ref Estimates Additional Portfolio at Note 21B) (see also 2007-08 Act (No.4) in Appropriation was included million of $255.535 Note 21: Appropriations Note 21: Appropriations Appropriations Services Annual Ordinary for Fund Revenue Consolidated the from Cash to Draw Authority Acquittal of 21A: Note previous period from carried Balance years) (prior appropriations of Reductions previous period carried for Adjusted balance Appropriation Act FMA Act from the ATO GST refunds received 1

242 FINANCIAL STATEMENTS

3 - - - - 457 596 2007 $'000 22,823 52,399 16,856 3,182,881 1,040,262 1,080,540 1,080,529 (2,102,352)

Total - - - - 14 432 2008 6,783 3,179 $'000 57,232 10,962 3,715,429 1,157,463 1,175,654 1,175,654 (2,539,775)

3 - - - - 421 920 596 2007 $'000 2,973 18,375 18,364 16,856 109,409 (91,045)

- - - - 14 486 432 2008 2,356 1,032 $'000 12,440 12,440 10,962 129,732 (117,292) Departmental Outputs

------404 404 404 2007 $'000 3,370 (2,966)

------Outcome 2 2008 4,492 1,757 1,757 1,757 $'000 (2,735)

------36 SECTION 2007 $'000 49,426 21,903 3,070,102 1,039,858 1,061,761 1,061,761 (2,008,341) Administered Expenses Administered Expenses

------Outcome 1

2008

2,693 5,751 $'000 54,876 4 3,581,205 1,155,706 1,161,457 (2,419,748) ble for payments ble for Particulars Note 21: Appropriations Note 21: Appropriations Appropriations Services Annual Ordinary for Fund Revenue Consolidated the from Cash to Draw Authority Acquittal of 21A: Note unused lapsed or Appropriations GST (FMA recoverable of account to take Appropriations s30A) (FMA s31) appropriations to net Annotations function entity of change appropriations on Adjustment of (FMA s 32) availa Total appropriations inclusive) year (GST the during made Cash payments (excluding Special Accounts credited to Appropriations GST) the Consolidated from to Draw Cash Authority of Balance Appropriations Services Annual Ordinary Revenue Fund for by Represented on hand and Cash at bank receivable Departmental appropriations ATO (net) from GST receivable customers from GST receivable Payablespayable GST - appropriations Undrawn, unlapsed Total 1,161,457

243 AUSAID ANNUAL REPORT 2007—2008

- - - - - (36) 1,423 2007 29,207 $’000

Total - - - - 291 (22) 2008 16,333 $’000 466,400

- - - - - 36 (36) 2007 22,563 $’000 riations

- - - - 22 liabilities liabilities (22) 2008 14,240 $’000 Admin assets and 466,400

------2007 $’000

------Years’ Outputs 2008 $’000

------Non – operating Non – operating 2007 $’000

------2008 $’000

------1,387 6,644 2007 $’000

------269 2008 2,093 $’000

4 ------

2007 $’000

------2008 $’000

------Outcome 2 2007 SECTION $’000

------2008 $’000

------Operating 2007 $’000

------2008 $’000

------Outcome 1 2007 $’000

------SPPs2 NAE3 SPPs2 NAE3 Equity Loans Previous NAE3 Equity Loans SPPs2 SPPs2 NAE3 2008 $’000 ) 2 Particulars See also footnote 1 at Note 21A. at 1 also footnote See Services Approp Annual Ordinary than Other for Fund Revenue Consolidated the from Cash to Draw Authority Acquittal of 21B: Note carried Balance from previous period Act: Appropriation Act Appropriation (No.2) Act Appropriation (No.4) Administered appropriation lapsed Act (Appropriation sections 7&8) Advance to the Finance Minister Reductions: years - prior year - current FMA Act: Refunds credited 2

244 FINANCIAL STATEMENTS - - - 2007 30,594 $’000 (30,303) Total Total - - - 2008 $’000 483,002

(14,075)

- - - 2007 22,563 $’000 (22,541) riations - - - liabilities liabilities liabilities 2008 $’000 Admin assets and Admin assets and 480,640 (14,075) - - - - - 2007 $’000 - - - - - Years’ Years’ Outputs Outputs 2008 $’000 - - - - - Non – operating Non – operating Non – operating 2007 $’000 - - - - - 2008 $’000 - - - 8,031 2007 $’000 (7,762) - - - - 2008 2,362 $’000 SECTION - - - - - 2007 $’000 - - - - - 2008 $’000

- - - - - 4 Outcome 2 Outcome 2 2007 $’000 - - - - - 2008 $’000 - - - - - Operating Operating 2007 $’000 - - - - - 2008 $’000 - - - - - Outcome 1 Outcome 1 2007 $’000 - - - - - SPPs2 NAE3 SPPs2 NAE3 Equity Loans Previous NAE3 Equity Loans SPPs2 SPPs2 NAE3 Previous NAE3 Equity Loans SPPs2 SPPs2 NAE3 2008 $’000 Particulars Particulars Note 21B: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Approp Annual Ordinary than Other for Fund Revenue Consolidated the from Cash to Draw Authority Acquittal of 21B: Note (FMA s30) Appropriations to take account of GST recoverable (FMA s30A) Adjustment of appropriations on entitychange of (FMA s32) function Total appropriations for available payments Cash payments the made during (GST year inclusive) Appropriations

245 AUSAID ANNUAL REPORT 2007—2008

- - 291 291 291

Total - - 468,927 468,927 468,927

- - 22 22 22 riations

- - liabilities liabilities Admin assets and 466,565 466,565 466,565

- - - - -

- - - - - Years’ Outputs

- - - - - Non – operating Non – operating

- - - - -

- - 269 269 269

- - 2,362 2,362 2,362

- - - - - 4

- - - - -

- - - - - Outcome 2 SECTION

- - - - -

- - - - - Operating

- - - - -

- - - - - Outcome 1

- - - - - SPPs2 NAE3 SPPs2 NAE3 Equity Loans Previous NAE3 Equity Loans SPPs2 SPPs2 NAE3 Particulars Note 21B: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Approp Annual Ordinary than Other for Fund Revenue Consolidated the from Cash to Draw Authority Acquittal of 21B: Note to credited Special Accounts (GST exclusive) of Balance to Authority Draw Cash from the Consolidated Revenue Fund for Other Than Ordinary Annual Services Appropriations by: Represented Cash Appropriation receivable Undrawn, unlapsed administered appropriations Total

246 FINANCIAL STATEMENTS

Note 22: Special Accounts

2008 2007 Account Name $ $ Services for Other Government and Non-Agency Bodies Account Legal Authority: Financial Management and Accountability Act 1997; s20

Purpose: for expenditure in connection with services performed on behalf of other Governments and bodies that are not FMA agencies. This account is non-interest bearing Balance carried from previous period 3,681,376 2,153,067 GST credits (FMA Act s30A) - - Other receipts 1,834,407 7,967,364 Available for payments 5,515,783 10,120,431 Payments made to suppliers (1,300,846) (6,439,055) Balance carried to next year 4,214,937 3,681,376

Represented by: Cash on call held in the OPA 4,214,937 3,681,376 Total balance carried to the next period 4,214,937 3,681,376

2008 2007 Account Name $ $ Australia-Indonesia Partnership for Reconstruction and Development (Grants) Special Account Legal Authority: Financial Management and Accountability Act 1997; s20

Purpose: Grants for relief, rehabilitation and reconstruction assistance to areas in the Republic of Indonesia directly SECTION affected by the Tsunami and economic and social development assistance to all areas of the Republic of Indonesia. This account is non-interest bearing Balance carried from previous period 288,290,549 395,738,218 Appropriations credited to Special Accounts - - GST credits (FMA Act s30A) - -

Available for payments 288,290,549 395,738,218 4 Payments made to suppliers (123,148,734) (107,447,669) Balance carried to next year 165,141,815 288,290,549

Represented by: Cash on call held in the OPA 165,141,815 288,290,549 Total balance carried to the next period 165,141,815 288,290,549

247 AUSAID ANNUAL REPORT 2007—2008

2008 2007 Account Name $ $ Australia-Indonesia Partnership for Reconstruction and Development (Loans) Special Account Legal Authority: Financial Management and Accountability Act 1997; s20

Purpose: Loans for relief, rehabilitation and reconstruction assistance to areas in the Republic of Indonesia directly affected by the Tsunami and economic and social development assistance to all areas of the Republic of Indonesia. This account is non-interest bearing Balance carried from previous period 442,753,553 500,000,000 Appropriations credited to Special Accounts - - GST credits (FMA Act s30A) - - Available for payments 442,753,553 500,000,000 Payments made to suppliers (80,381,420) (57,246,447) Balance carried to next period 362,372,133 442,753,553

Represented by: Cash on call held in the OPA 362,372,133 442,753,553 Total balance carried to the next period 362,372,133 442,753,553

Note: AusAID has a Other Trust Moneys Account. This account was established under section 20 of the Financial Management and Accountability Act 1997 (FMA Act). For the years ended 30 June 2007-2008 the account had nil balances and there were no transactions debited or credited to it (nil: 2006-07). The purpose of the Other Trust Moneys Account is for the expenditure of moneys temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth. 4

SECTION

248 FINANCIAL STATEMENTS

Note 23: Compensation and Debt Relief Departmental

No ‘Act of Grace’ payments were made under subsection 33(1) of the Financial Management and Accountability Act 1997 (2006-07: No waivers).

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2006-07: No waivers).

No payment made under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme (2006-07: No payments).

No ex-gratia payments were provided for during the reporting period (2006-07: No payments).

No payments made in special circumstances relating to APS employment pursuant to s73 of the Public Service ACT 1999 (PS Act).

Administered

No ‘Act of Grace’ payments were made under subsection 33(1) of the Financial Management and Accountability Act 1997 (2006-07: No waivers).

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2006-07: No waivers).

No payment made under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme (2006-07: No payments). SECTION

No ex-gratia payments were provided for during the reporting period (2006-07: No payments).

No payments made in special circumstances relating to APS employment pursuant to s73 of the Public Service ACT 1999 (PS Act).

249 AUSAID ANNUAL REPORT 2007—2008

Note 24: Reporting of Outcomes

Note 24A: Net Cost of Outcome Delivery

Outcome 1 Outcome 2 Total 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 Expenses Administered 2,615,173 1,741,577 194,781 161,082 2,809,954 1,902,659 Departmental 106,164 90,176 3,162 3,274 109,326 93,450 Total expenses 2,721,337 1,831,753 197,943 164,356 2,919,280 1,996,109 Costs recovered from provision of goods and services to the non government sector Administered ------Departmental 412 212 - 23 412 235 Total costs recovered 412 212 - 23 412 235 Other external revenues Administered Interest on Loan Receivable - - 1,028 329 1,028 329 Other 148,556 1,341,130 - - 148,556 1,341,130 Total Administered 148,556 1,341,130 1,028 329 149,584 1,341,459 Departmental Interest on cash deposits ------Gains from disposal of assets ------Reversals of previous asset ------write-downs Other - 235 - - - 235 Goods and Services Revenue 530 42 32 - 562 42

4 from External Entities

Total Departmental 530 277 32 - 562 277 Total other external revenues 149,086 1,341,407 1,060 329 150,146 1,341,736 Net cost/(contribution) of 2,571,839 490,134 196,883 164,004 2,768,722 654,138 outcome Outcomes 1 and 2 are described in Note 1.1 . Net costs shown include intra-government costs that are eliminated in

SECTION calculating the actual Budget Outcome. Refer to Note 24B: , Note 24C: and Note 24D: below.

250 FINANCIAL STATEMENTS

Note 24B: Major Classes of Departmental Income and Expenses by Output Group- Outcome 1

Output Group 1.1 Output 1.2 Outcome 1 Total

Outcome 1 Output1.1.1 Output 1.2.1 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 Departmental expenses Employees 12,302 10,755 51,437 44,971 63,739 55,726 Suppliers 7,030 5,689 29,394 23,786 36,424 29,475 Depreciation & amortisation 1,040 619 4,347 2,590 5,387 3,209 Other 119 341 495 1,426 614 1,767 Total departmental expenses 20,491 17,404 85,673 72,773 106,164 90,176

Funded by: Revenues from government 19,689 16,876 82,329 70,564 102,018 87,440 Sale of goods and services 48 9 203 39 251 48 Other non-taxation revenue 54 40 225 166 279 206 Other gains 80 45 332 190 412 235 Total departmental revenues 19,871 16,970 83,089 70,959 102,960 87,929

Note 24C: Major Classes of Departmental Income and Expenses by Output Group- Outcome 2

Output Group 2.1 Outcome 2 Output 2.1.1 Total Outcome 2 2008 2007 2008 2007 SECTION $’000 $’000 $’000 $’000 Departmental expenses Employees 2,284 2,401 2,284 2,401 Suppliers 734 830 734 830

Depreciation & amortisation 144 43 144 43 4 Other - - - - Total departmental expenses 3,162 3,274 3,162 3,274

Funded by: Revenues from government 6,488 5,722 6,488 5,722 Other non-taxation revenue 32 23 32 23 Total departmental revenues 6,520 5,745 6,520 5,745 Outcomes 1 and 2 are described in Note 1.1 . Net costs shown include intra-government costs that are eliminated in calculating the actual Budget outcome

251 AUSAID ANNUAL REPORT 2007—2008

Note 24D: Major Classes of Administered Revenues and Expenses by Outcomes Outcome 1 Outcome 2 Total 2008 2007 2008 2007 2008 2007

$’000 $’000 $’000 $’000 $’000 $’000 Administered Income Sale of goods and services ------Other non-taxation income 148,556 1,341,130 1,028 329 149,584 1,341,459 Total Administered income 148,556 1,341,130 1,028 329 149,584 1,341,459 Administered expenses Grants 333,407 314,883 121,115 109,107 454,522 423,990 Development Cooperation Programme 1,854,659 1,425,569 4,371 2,976 1,859,030 1,428,545 Other 427,107 1,125 69,295 48,999 496,402 50,124 Total Administered expenses 2,615,173 1,741,577 194,781 161,082 2,809,954 1,902,659

Outcomes 1 and 2 are described in Note 1.1 . Net costs shown include intra-government costs that are eliminated in calculating the actual Budget outcome.

SECTION

252 FINANCIAL STATEMENTS

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253 AUSAID ANNUAL REPORT 2007—2008

AusAID’s Jen Clancy, Joanna Tough, and Ray Bojczuk Exhibition managers Simon and Julie Goode point the in the agency’s new crisis centre in Canberra working Relief in sight van and caravan towards the ‘windy city’ to deliver Australia’s humanitarian response to Papua of Geraldton as the national tour reached Western New Guinea after Cyclone Guba caused death and Australia, then South Australia, Victoria and Tasmania destruction in Oro Province in 2007–08 Photo: Angus Braithwaite Photo: Julie Goode

Opposite » Peter Versegi, Assistant Director General of AusAID’s Office of Development Effectiveness— the Office was responsible for producing the first Annual Review of Development Effectiveness which was tabled in Parliament in March 2008 Photo: Angus Braithwaite

254 APPENDICES Section 5

A. Minister and Parliamentary Secretaries B. Resources summary for outcomes C. Aid program expenditure D. Stafﬁ ng overview E. Freedom of information F. Information available on the internet G. Consultancy services H. Advertising and market research I. Ecologically sustainable development and environmental performance AUSAID ANNUAL REPORT 2007—2008

A. MINISTER AND PARLIAMENTARY SECRETARIES

Minister for Foreign Affairs, The Hon. Stephen Smith, MP

Mr Smith has overall responsibility for the Foreign Affairs and Trade portfolio, including administration of the Department of Foreign Affairs and Trade. He is responsible for all non-trade international political, multilateral and legal issues (including the treaty-making process), consular and passport functions, management of overseas estate, and development assistance matters. In addition, he is responsible for all human rights, arms control and disarmament issues, peacekeeping, and the non-trade related aspects of the UN system. Mr Smith shares responsibility for international security and counter terrorism issues with the Minister for Defence. Mr Smith has primary carriage of non-trade related public affairs activities and questions of protocol. He also has responsibility for the administration and management of AusAID, the Australian Secret Intelligence Service, the Australian Safeguards and Non-Proliferation Office and the Australian Centre for International Agricultural Research. 5

SECTION

256 APPENDICES A. MINISTER AND PARLIAMENTARY SECRETARIES

Parliamentary Secretary for International Development Assistance The Hon. Bob McMullan, MP

Mr McMullan supports the Minister for Foreign Affairs to implement Australia’s international development policy and is responsible for the day-to-day management of issues related to the aid program. This involves working closely with AusAID, international development partners, other donor governments and international organisations to advance Australia’s development objectives. He is also responsible for raising the awareness of the Government’s aid policies and priorities among the Australian public through the media and public events. Mr McMullan works closely with the Parliamentary Secretary for Pacific Island Affairs, Mr Duncan Kerr, to advance the Pacific Partnerships for Development and other development assistance activities in the Pacific.

Parliamentary Secretary for Pacific Island Affairs The Hon. Duncan Kerr, MP

Mr Kerr supports the Minister for Foreign Affairs in advancing Australia’s interests in the Pacific. With the Minister for Foreign Affairs, he works with Pacific countries in taking forward Australia’s new partnership approach to the region based on mutual respect and mutual responsibility. Mr Kerr works closely with the Parliamentary Secretary for International Development Assistance, Mr Bob McMullan, to advance the Pacific Partnerships for Development and other development assistance activities in the Pacific. Mr Kerr is also responsible for raising the Australian public’s awareness of the Government’s policies and priorities in the Pacific through the media and public events. SECTION

257 AUSAID ANNUAL REPORT 2007—2008

B. RESOURCES SUMMARY FOR OUTCOMES

TABLE 1: RESOURCE SUMMARY FOR OUTCOMES

Variance Budget plus between additional Actual budget plus estimates expenses additional Budget 2007–08 2007–08 estimates and 2008–09 $’000 $’000 actual $’000 $’000 Administered expenses Outcome 1 2 602 894 2 615 173 12 279 3 027 836 Outcome 2 4 482 4 371 (111) 4 386 Outcome 2 AIPRD grants 130 000 121 115 (8 885) 100 000 Outcome 2 AIPRD loans 73 320 69 295 (4 025) 107 522 Total administered 2 810 696 2 809 954 (742) 2 716 400 Price of departmental outputs Output 1.1—Policy 19 695 20 491 796 23 722 Output 1.2—Program management 82 351 85 673 3 322 99 190 Output 2.1—AIPRD management 6 448 3 162 (3 286) 6 482 Revenue from government 108 494 109 326 832 129 394 appropriations for departmental outputs Revenue from other sources 320 512 191 231 Total price of outputs 108 814 109 326 (61) 129 625 Total for outcomes 2 919 510 2 919 280 (280) 2 825 624

1. Note that Administered does not include capital appropriation. Previously, funding for new multilateral replenishment for the International Development Association and the Asian Development Fund were all appropriated through Bill 1. Due to a change in accounting treatment through 2007–08 additional estimates the investment components of these replenishments are now funded via capital injections with the grant component continuing to be funded through Bill 1. 2. Note that the full $1 billion appropriation for AIPRD grants and loans was received through the 2004–05 Portfolio Supplementary Additional Estimates Statements and was credited to two special accounts. 3. Note that the above table is presented on an accrual basis. In 2007–08, budgeted cash flows for AIPRD loans were $86.258 million with actual cash flows of $80.381 million. 5

SECTION

258 APPENDICES C. AID PROGRAM EXPENDITURE

C. AID PROGRAM EXPENDITURE

TABLE 2: TOTAL AUSTRALIAN OFFICIAL DEVELOPMENT ASSISTANCE (ODA) TO PARTNER COUNTRIES

Estimated outcome1 2007–082 Partner countries/regions $m PAPUA NEW GUINEA & PACIFIC Papua New Guinea 371.0 Solomon Islands3 229.8 Vanuatu 39.8 Fiji 27.6 Samoa 22.0 Tonga 17.8 Kiribati 15.5 Nauru 27.4 Regional Pacific4 125.1 Total PNG & Pacific 876.1 EAST ASIA Indonesia (ongoing program) 228.9 Indonesia (AIPRD) 220.7 Vietnam 92.2 Philippines 105.8 China 41.6 Cambodia 46.7 East Timor 86.4 Laos 27.7 Thailand 8.8 SECTION Burma 17.9 Regional East Asia4 104.6 Total East Asia 981.4

259 AUSAID ANNUAL REPORT 2007—2008

Estimated outcome1 2007–082 Partner countries/regions $m SOUTH ASIA, AFRICA & OTHER Bangladesh 46.5 Sri Lanka 29.5 Pakistan 26.7 India 8.4 Regional South Asia4 29.6 Africa 101.2 Middle East and Central Asia5 199.2 Total South Asia, Africa & other 441.2 Core contributions to multilateral organisations and other ODA not attributed to 874.6 particular countries or regions6 Adjustments7 –1.5 Total ODA (cash) 3171.8

NOTES TO TABLE 2 1. Shows total expenses, minus commitments to new multi-year liabilities (for example, the International Development Association (IDA) or the Heavily Indebted Poor Countries (HIPC) Initiative), plus cash payments for these multi-year liabilities. 2. Estimated ODA for 2007–08 represents expected outcomes as estimated at May 2008. 3. Solomon Islands includes ODA eligible Australian Government expenditure under the Regional Assistance Mission to Solomon Islands (RAMSI). 4. Regional Pacific, Regional East Asia and Regional South Asia include multi-country and regional activities and small bilateral programs. 5. Middle East and Central Asia includes Palestinian territories, Afghanistan and Iraq. 6. ‘Core contributions to multilateral organisations and other ODA not attributed to particular countries or regions’ includes payments to some UN and Commonwealth organisations, and ODA eligible departmental expenditure. The ODA eligible components of cash payments to IDA, ADF, GEF, HIPC and MPMF are also included in this line item. 7. ‘Adjustments’ includes adjustments to reconcile expenses to ODA, which is reported on a cash basis. These adjustments include accrual adjustments to adjust expenses to cash, and adjustments to exclude non ODA eligible departmental and administered expenditure. The adjustments exclude non ODA eligible departmental expenditure such as receipts under section 31 of the Financial Management and Accountability Act 1997, GST payments, and fringe benefits tax. The adjustments also exclude non ODA eligible administered expenditure such as miscellaneous receipts and GST payments. 5

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260 APPENDICES C. AID PROGRAM EXPENDITURE

TABLE 3: COUNTRY AND REGIONAL PROGRAMS EXPENDITURE 2004–2008

Country Expenses ($m) 2004–05 2005–06 2006–07 2007–08 PAPUA NEW GUINEA 294.1 279.2 297.0 334.9 Retirement benefits 13.0 12.5 12.2 11.9 Subtotal PNG 307.1 291.7 309.2 346.8 PACIFIC Solomon Islands 92.6 98.1 101.8 97.4 Vanuatu 20.9 21.8 22.1 30.3 Fiji 17.4 19.8 17.8 18.0 Samoa 12.5 12.6 12.9 12.4 Tonga 9.2 8.2 9.1 13.4 Kiribati 7.5 7.9 6.5 5.7 Tuvalu 2.9 3.3 3.3 4.0 Micronesia 1 1.6 1.9 1.4 1.3 Cook Islands 1.2 1.7 1.7 2.7 Niue and Tokelau 1.2 6.2 1.1 1.4 Nauru 0.2 0.3 0.5 1.9 Nauru additional 13.5 12.6 18.9 17.8 Pacific Regional 73.7 73.9 78.6 121.3 Subtotal Pacific 254.4 268.3 275.9 327.7 EAST ASIA Indonesia (ongoing program) 119.6 125.0 125.1 155.2 Indonesia (AIPRD) 2 8.7 110.3 169.3 205.9 Vietnam 55.0 57.7 62.0 71.5 Philippines 46.1 53.3 58.5 87.9

China 40.7 36.3 34.2 30.7 SECTION East Timor 28.5 26.7 40.6 56.7 Cambodia 22.5 23.1 25.6 31.7 Laos 12.5 13.4 12.6 16.2

Burma 3.1 3.4 2.6 7.1 5 Mongolia 1.9 1.9 2.4 2.4 Thailand 2.3 1.5 1.6 0.2 East Asia Regional 31.8 37.9 74.0 103.7 Subtotal East Asia 372.8 490.5 608.5 769.2

261 AUSAID ANNUAL REPORT 2007—2008

Country Expenses ($m) 2004–05 2005–06 2006–07 2007–08 SOUTH ASIA Bangladesh 19.8 19.5 21.3 33.9 Sri Lanka 6.6 12.1 9.0 9.3 India 12.0 5.3 1.7 2.3 Nepal 4.5 3.8 3.4 4.7 Maldives 1.6 1.5 2.8 2.2 Bhutan 1.0 1.0 1.1 1.4 South Asia Regional 4.9 10.3 11.4 13.1 Subtotal South Asia 50.3 53.5 50.8 66.8 OTHER Africa 33.0 34.3 34.0 42.9 Palestinian territories and other 3.0 3.9 17.0 23.9 Middle East Pakistan 2.5 12.6 14.8 19.6 Subtotal other 38.5 50.8 65.8 86.4 CROSS REGIONAL PROGRAMS 18.7 27.0 63.9 141.6 TOTAL COUNTRY PROGRAMS 3 1041.8 1181.8 1374.0 1738.4

NOTES TO TABLE 3 1. For the purposes of this table, Micronesia includes the Federated States of Micronesia, Palau and the Republic of the Marshall Islands. 2. Includes Joint Management, grants and loans. 3. Differences between the 2006–07 country and global program data published as part of the 2006–07 and 2007–08 annual reports and Australia’s International Development Assistance Program 2008–09 include outcomes from changes in program reporting structures which affect data from 2006–07 onwards, as well as the result of rounding differences. The total country program expenditure figure for 2005–06 has also been amended to correct an arithmetical error. 5

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262 APPENDICES C. AID PROGRAM EXPENDITURE

TABLE 4: GLOBAL PROGRAMS EXPENDITURE 2004–2008

2004–05 2005–06 2006–07 2007–08 EMERGENCY, HUMANITARIAN AND REFUGEE AID 206.2 200.4 195.2 298.4 of which: WFP 0.0 0.0 23.8 29.8 MULTILATERAL REPLENISHMENTS1 ADF 295.4 0.0 0.0 0.0 IDA 389.2 0.0 0.0 583.0 MDRI 0.0 0.0 136.2 0.0 IFAD 0.0 0.0 0.0 0.0 Heavily Indebted Poor Countries Initiative 34.8 0.0 0.0 34.8 GEF 0.0 0.0 59.8 0.0 MPMF 0.0 11.1 0.0 0.0 Subtotal 719.3 11.1 196.0 617.8 OTHER INTERNATIONAL ORGANISATIONS United Nations agencies 61.7 78.1 36.7 60.9 of which: WFP 31.0 32.5 0.0 0.0 Commonwealth organisations and other 12.1 11.4 13.0 12.6 Other international programs2 43.1 44.1 28.8 81.8 Subtotal 116.8 133.5 78.5 155.3 COMMUNITY PROGRAMS Non-government organisations 27.5 27.1 28.0 38.4 Volunteer programs 11.2 15.6 16.0 16.7 AYAD 8.0 10.5 15.5 15.1 Subtotal 46.6 53.2 59.5 70.1 COMMUNICATION, EDUCATION

AND INFORMATION SECTION Public information / development education 2.8 3.0 3.0 3.9 Development research 0.9 1.7 4.8 6.9 Seminar support 1.2 1.4 1.5 1.3

Subtotal 4.8 6.1 9.3 12.1 5 TOTAL GLOBAL PROGRAMS 3 1093.7 404.2 538.4 1153.7

NOTES TO TABLE 4 1. New commitments to the multilateral development banks, Montreal Protocol Multilateral Fund, and Global Environment Facility are recorded as liabilities at the time of commitment. 2. Other international programs include the Global Alliance for Vaccines & Immunization, Global Crop Diversity Trust Fund, International Tropical Timber Organisation, Global Fund to Fight Aids, Tuberculosis and Malaria, and other international health programs. 3. Differences between the 2006–07 country and global program data published as part of the 2006–07 and 2007–08 annual reports and Australia’s International Development Assistance Program 2008–09 include outcomes from changes in program reporting structures which affect data from 2006–07 onwards, as well as the result of rounding differences.

263 AUSAID ANNUAL REPORT 2007—2008

D. STAFFING OVERVIEW

TABLE 5: EMPLOYEES BY CLASSIFICATION, LOCATION AND GENDER, 30 JUNE 2008

FEMALE MALE Australia Overseas Australia Overseas Total staff APS 1 1 1 APS 2 2 2 APS 3 1 4 5 Graduates (APS 3) 15 4 19 APS 4 24 8 32 APS 5 49 1 11 61 APS 6 93 13 36 6 148 E1 128 25 71 24 248 E2 50 15 30 15 110 SES 8 2 16 3 29 Total 370 56 181 48 655

Note: Includes employees paid against department budget on 30 June 2008. Does not include unpaid inoperative employees.

TABLE 6: EMPLOYEES BY STATUS AND ATTENDANCE TYPE, 30 JUNE 2008

ONGOING NON-ONGOING Full-time Part-time Sub-total Full-time Part-time Sub-total Total staff Male 204 10 214 14 1 15 229 Female 352 51 403 20 3 22 426 Total 556 61 617 34 4 37 655

Note: Includes employees paid against department budget on 30 June 2008. Does not include unpaid inoperative employees.

TABLE 7: SENIOR EXECUTIVE SERVICE, 30 JUNE 2008 5

FEMALE MALE Australia Overseas Australia Overseas Total staff SES Band 1 7 1 11 3 22 SES Band 2 1 1 4 0 6 SECTION SES Band 3 0 0 1 0 1 Total 8 2 16 3 29

Note: Includes employees paid against department budget on 30 June 2008. Does not include unpaid inoperative employees.

264 APPENDICES D. STAFFING OVERVIEW

TABLE 8: EMPLOYEES BY LOCATION AND GENDER, 30 JUNE 2008

LOCATION FEMALE MALE Total staff Australia 370 181 551 Apia 1 1 2 Bangkok 2 2 4 Beijing 3 3 Colombo 1 1 2 Dhaka 1 1 2 Dili 4 4 Funafuti 0 Geneva 1 1 Hanoi 1 3 4 Ho Chi Minh City 1 1 Honiara 4 4 Islamabad 1 1 Jakarta 12 7 19 Kathmandu 0 Manila 2 4 6 Maputo 0 Nairobi 0 Nauru 1 1 New Delhi 0 New York 1 1 Noumea 0 Nuku’alofa 1 1 Paris 2 2 Phnom Penh 2 2 4

Pohnpei 0 SECTION Port Moresby 17 8 25 Port Vila 1 2 3 Pretoria 3 3

Rangoon 0 5 Rome 1 1 Suva 3 3 6 Tarawa 1 1 Tarin Kowt 1 1 Vientiane 2 2 Total 426 229 655

Note: Includes employees paid against department budget on 30 June 2008. Does not include unpaid inoperative employees.

265 AUSAID ANNUAL REPORT 2007—2008

TABLE 9: AUSAID COLLECTIVE AGREEMENT SALARY RANGE, 30 JUNE 2008

CATEGORY SALARY BAND AusAID graduate $46 853 AusAID trainee $36 492 to $39 505 APS 1 $36 492 to $39 505 APS 2 $41 436 to $44 851 APS 3 $46 853 to $49 721 APS 4 $52 533 to $55 750 APS 5 $58 369 to $60 727 APS 6 $64 354 to $71 052 EL 1 $80 140 to $87 648 EL 2 $96 890 to $109 111

TABLE 10: AUSAID SES EMPLOYEE SALARY RANGE, 30 JUNE 2008

CATEGORY SALARY RANGE NUMBERS OF STAFF SES Band 1 $134 102 – $176 970 25 SES Band 2 and 3 $164 376 – $213 811 8

Note: Includes SES employees paid from department and administered budgets.

TABLE 11: EMPLOYEES BY WORKPLACE DIVERSITY CATEGORY AND LEVEL, 30 JUNE 2008

Culturally and linguistically Aboriginal and Total diverse Torres Strait People with staff Female backgrounds* Islanders* disability* %%%% APS 1 1 0 0.00% 1 100.00% 0 0.00% 0 0.00% APS 2 2 2 100.00% 0 0.00% 0 0.00% 0 0.00% 5

APS 3 24 16 66.67% 3 12.50% 1 4.17% 1 4.17% APS 4 32 24 75.00% 10 31.25% 0 0.00% 1 3.13% APS 5 61 50 81.97% 19 31.15% 0 0.00% 1 1.64% APS 6 148 106 71.62% 44 29.73% 2 1.35% 2 1.35%

SECTION EL 1 248 153 61.69% 68 27.42% 1 0.40% 4 1.61% EL 2 110 65 59.09% 16 14.55% 1 0.91% 1 0.91% SES 29 10 34.48% 4 13.79% 0 0.00% 1 3.45% TOTAL STAFF 655 426 65.04% 165 25.19% 5 0.76% 11 1.68%

*Only identifies people who have volunteered information.

266 APPENDICES D. STAFFING OVERVIEW

TABLE 12: APS EMPLOYEES UNDERTAKING AID PROGRAM DELIVERY ACTIVITIES PAID AGAINST ADMINISTERED BUDGET BY CLASSIFICATION AND GENDER (EXCLUDING EXPERTS AND ADVISORS ON COMMERCIAL CONTRACTS), 30 JUNE 2008

FEMALE MALE Australia Overseas Australia Overseas Total staff APS 1 0 APS 2 0 APS 3 0 Graduates (APS 3) 0 APS 4 1 1 APS 5 2 5 7 APS 6 11 9 4 6 30 E1 14 16 17 14 61 E2 5 2 9 6 22 Advisers 3 1 12 2 18 SES 1 1 2 4 Total 35 29 49 30 143

TABLE 13: AUSAID WINNERS OF AUSTRALIA DAY ACHIEVEMENT AWARDS, 2008

AusAID Accommodation Move Team IT, Property and Security Jonathan Ball Sarah Goulding and Sarah MacCana Melinda Johnston Fahmida Shabnam Ceri Teather Widyanti Thajeb SECTION TABLE 14: LEARNING AND DEVELOPMENT—PARTICIPANTS 2007–08

Financial management and AidWorks (Canberra and Posts) 1208 Aid program design and delivery (Canberra and Posts) 444

New starters induction program 134 5 Corporate/professional skills (Canberra and Posts) 1723 Contracts and procurements (Canberra and Posts) 383 Management and leadership 231 Overseas-based staff training in Canberra 78 External programs—professional skills 337 Cross regional (thematic aid areas) 325 Total 4863

267 AUSAID ANNUAL REPORT 2007—2008

E. FREEDOM OF INFORMATION

This statement is provided in accordance with section 8 of the Freedom of Information Act (FOI) 1982 and is correct to 30 June 2008.

The FOI Act extends the right to obtain access to documents in the government’s possession. Access is limited only by exemptions that, for example, protect essential public interests and the private and business affairs of people about whom departments and statutory authorities collect and hold information. During 2007–08, AusAID met its obligations under the Act, processing eight requests.

Members of the public seeking access to documents should lodge a formal FOI request. This must be made in writing, be accompanied by a $30 application fee, and include a contact name, an Australian address to which notifications can be sent, telephone number and fax number (if available). AusAID’s Parliamentary Services Section is responsible for managing FOI matters. All FOI inquiries should be directed to:

Freedom of Information Coordinator Parliamentary Services Section AusAID GPO Box 887 Canberra ACT 2601 Tel: (02) 6206 4617 Fax: (02) 6206 4613

AusAID levies the applicable fees and charges imposed under the FOI regulations. Such fees and charges may be remitted, reduced or not imposed if grounds for financial hardship or general public interest can be established.

Program management functions

AusAID exercises the following decision-making powers and administrative functions: • authorising expenditure on Australia’s overseas aid program including: — support to international organisations — contracts for the supply of goods and services under the aid program 5

— support to accredited non-government organisations and community groups — programs to send Australian volunteers overseas to undertake development cooperation activities. • managing development cooperation activities and programs including: SECTION — maintaining systems of program management and accountability, including systems of performance information monitoring, analysis and reporting — administering the management and outcomes of appraisals, reviews and evaluations of development cooperation activities — accrediting and administering funding to non-government organisations (as well as assessing Australian non-government organisation applications for tax deductibility under the Overseas Aid Gift Deduction Scheme)

268 APPENDICES E. FREEDOM OF INFORMATION

— inviting tenders and selecting and managing contractors to provide services to implement development cooperation activities — monitoring the performance of contractors that receive funding through Australia’s aid program — overseeing the scholarship management program.

Participation and consultation

AusAID consults and seeks the participation of a wide range of people through various forums and activities. These include: • global education (including development education) in schools and universities, which is supported by the agency through professional teacher training and a specialist global education website • a targeted program of events, displays and activities to engage the community and generate awareness of the aid program across Australia, combined with a strategic program of domestic and international engagements with AusAID stakeholders.

AusAID documents

AusAID produces a range of documents on administration of the aid program including: • submissions to portfolio ministers, the Parliamentary Secretary for International Development Assistance, AusAID’s Director General and executive, and other government agencies • Cabinet submissions • records of parliamentary related business such as responses to questions on notice, briefings for parliamentary delegations and parliamentarians • possible parliamentary questions, written submissions to parliamentary committees and responses to questions from parliamentary committee inquiries • replies to ministerial and departmental correspondence • texts of speeches and press statements • briefs, reports and documents on international and Australian aspects of aid policy issues SECTION • treaties, memorandums of understanding and other agreements between the Australian and partner governments • documents relating to program and financial management, contracts and tenders

• reviews, evaluations and audit reports on management systems, controls and the 5 efficiency and effectiveness of aid programs and activities • guidelines, policies and procedures relating to strategies and corporate planning, project planning and implementation, including risk assessment and fraud prevention policy and strategies • materials relating to staff development, training, personnel management and general administration.

269 AUSAID ANNUAL REPORT 2007—2008

AusAID publications

AusAID produced a range of publications, brochures and maps to increase community awareness and understanding of the Australian international aid program during the year. They included:

Publications • Aid and the environment—an environment strategy for Australian aid • Valuing Pacific fish—a framework for fisheries-related development assistance in the Pacific • The Greater Mekong—Australia’s strategy to promote integration and cooperation 2007–2011 • Annual report 2006–07 • AusAID development research strategy, 2008–10 • Child protection policy • Annual review of development effectiveness 2007 • Budget report—Australia’s international development assistance program 2008–09 • Pacific economic survey 2008—connecting the region • Making land work—volume one: reconciling customary land and development in the Pacific • Making land work—volume two: case studies on customary land and development in the Pacific.

Brochures and booklets • Aid and the environment—an environment strategy for Australian aid: summary • Aid and the environment—an environment strategy for Australian aid: summary table • Australia’s mine action activities 2006–07 • Child protection policy—compliance standards for contractors and non-government organisations • Child protection procedures manual 5 • Annual review of development effectiveness 2007—key findings • Budget report—Australia’s international development assistance program 2008–09: budget highlights • Would you like to volunteer overseas?

SECTION • Approaches to anti-corruption through the Australian aid program—lessons from PNG, Indonesia and Solomon Islands • Pacific economic survey 2008—summary • Making land work—volume one: reconciling customary land and development in the Pacific summary.

270 APPENDICES E. FREEDOM OF INFORMATION

Map • Where aid is delivered.

AusAID publications are available on the website at www.ausaid.gov.au/publications or from:

National Mailing and Marketing Tel (02) 6269 1050 Fax (02) 6260 2770 Email: [email protected] Mailing address: PO Box 7077, Canberra BC, ACT, 2610 SECTION

271 AUSAID ANNUAL REPORT 2007—2008

F. INFORMATION AVAILABLE ON THE INTERNET

AusAID’s website provides a comprehensive information service on the Australian Government’s overseas aid program. Major corporate publications available on the website include the AusAID annual report, the budget statement and a range of publications focusing on Australia’s aid program. The website also provides details on country program activities, information on Australia’s response to humanitarian crises and major online information resources.

Corporate enabling functions are supported and users can apply online for scholarships, research grants and employment opportunities. Information provided to the Australian business community includes how to access current tender opportunities, advice on AusAID business and tender processes and how to apply for a range of funding schemes available through AusAID.

Visitors to the website can also subscribe to a range of email news and information alerts.

Internet and disability access

AusAID’s website conforms to all Australian Government Information Management Office guidelines and World Wide Web Consortium (WC3) web content accessibility guidelines. 5

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272 APPENDICES G. CONSULTANCY SERVICES

G. CONSULTANCY SERVICES

TABLE 15: SUMMARY OF CONSULTANCY CONTRACTS AND PERIOD OFFERS

2005–06 2006–07 2007–08 AusAID consultancy contracts AusAID consultancy contracts1 AusAID consultancy contracts1 Financial Financial Financial limits limits limits Number of new Number of new Number of new of new contracts 2005–06 of new contracts 2006–07 of new contracts 2007–08 contracts awarded expenditure contracts awarded expenditure contracts awarded expenditure awarded ($’000)2 ($’000)2 awarded ($’000)2 ($’000)2 awarded ($’000)2 ($’000)2 Contracts 9 1160 533 4 399 347 4 283 244 Period offer service orders2 3 90 20 1 44 44 0 0 0 Total 12 1250 553 5 443 391 4 284 244

NOTES TO TABLE 15 1 The details of each new consultancy let for $10 000 or more during 2007–08 are provided in table 15. Information on contracts and consultancies of $10 000 or more are also available on the AusTender website at www.tenders.gov.au AusAID also publishes details of contracts and agreements of $100 000 or more in accordance with the Senate Order for Departmental and Agency Contracts on its business website at www.ausaid.gov.au/business/ 2 All figures are GST inclusive. Expenditure figures include total expenditure on new and ongoing consultancies during the relevant financial year. 3 Period offers are standing offers with contractors for the provision of short-term technical advice in a wide range of sectors and on an as required basis. Contractors are awarded period offers through a competitive tendering process. SECTION

273 AUSAID ANNUAL REPORT 2007—2008

TABLE 16: CONSULTANCY SERVICES LET OVER $10 000 DURING 2007–08

Contract Selection Consultant name Description price1 process2 Justification3 Valuation and accounting Deloitte Touche Tohmatsu advisory services for IDA/ADF $83 842 Select tender B ECA International Pty Ltd AusAID Policy Review $25 000 Direct sourcing C McGrath Nicol Advisory Development of a Certified Partnership Compliance Model $95 000 Direct sourcing B Noetic Solutions Pty Ltd AusAID Workforce Planning $10 450 Direct sourcing C Development of an Administered/Accounting PriceWaterhouseCoopers Framework $70 000 Select tender B

NOTES TO TABLE 16 1 All figures are GST inclusive. 2 Explanation of selection process terms drawn from the Commonwealth Procurement Guidelines (January 2005): Open tender: a procurement procedure in which a request for tender is published widely inviting all businesses that satisfy the conditions for participation to submit tenders. Select tender: a procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders. Tenders are invited from a shortlist of competent suppliers. Direct sourcing: a procurement process, available only under certain defined circumstances, where a single potential supplier or suppliers is invited to make a submission. Panel: an arrangement under which a number of suppliers, usually selected through a single procurement process, may each supply property or services as specified in the panel arrangements. This category includes standing offers (including AusAID’s period offers). 3 Justification for decision to use consultancy: A—skills currently unavailable within agency. B—need for specialised or professional skills. C—need for independent research or assessment. 5

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274 APPENDICES H. ADVERTISING AND MARKET RESEARCH

H. ADVERTISING AND MARKET RESEARCH

TABLE 17: ADVERTISING AND MARKET RESEARCH EXPENDITURE

Agencies/organisation Description Amount Advertising agencies HMA Blaze Pty Ltd Tender advertising $88 402.07 Market research organisations Colmar Brunton Primarily measuring the effectiveness of the $57 446.82* Relief in sight photographic exhibition Polling organisations Direct mail organisations National Mailing and Marketing Processing and mailing AusAID publications $164 168.15* Media advertising HMA Blaze Pty Ltd Recruitment advertising $156 700.00 Australian Public Service Commission Recruitment advertising (Gazette subscription) $7667.00 Hobsons Australia Pty Ltd Recruitment advertising (Graduate Program) $20 790.00 Total $273 559.07

* Excluding GST SECTION

275 AUSAID ANNUAL REPORT 2007—2008

I. ECOLOGICALLY SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL PERFORMANCE

AusAID is committed to sound environmental practices. The agency’s environmental performance in 2007–08 is discussed against section 516A of the Environment Protection and Biodiversity Conservation Act 1999 (Cth).

How the activities and the administration of legislation by AusAID in 2007–08 accorded with the principles of ecologically sustainable development (section 156A(6)(a))

AusAID demonstrates commitment to sound environmental practices by identifying and understanding the legal and policy setting in which aid activities are being implemented. There are four broad policy and legislative obligations relevant to AusAID’s activities. These include: • AusAID’s development cooperation policies • Commonwealth environmental legislations relevant to AusAID’s activities • partner government legislation relevant to AusAID’s activities • relevant multilateral environment agreements.

In 2007–08, the agency identified and worked with three key policies and legislations: • The Environment Protection and Biodiversity Conservation Act, 1999 (Cth). This legislation requires AusAID to consider advice from the Minister for the Environment, Water, Heritage and the Arts (or his delegate) before entering into a contract, agreement or arrangement for the implementation of a project that has, will have, or is likely to have a significant impact on the environment anywhere in the world. Ecologically sustainable development is a key objective of the Act and is consistent with the aim of the Australian aid program. • Aid and the environment—building resilience, sustaining growth: an environment strategy for Australian Aid, 2007. This strategy signals a significant increase in Australia’s environment related support in the Asia-Pacific region. Its goal is to sustain economic growth and reduce poverty in the Asia-Pacific by improving the management

5 of natural resources, increasing community resilience and better conserving natural heritage. • Australia’s aid: promoting growth and stability, 2006. This policy outlines a 10-year strategic direction for Australia’s aid program. It acknowledges that the countries of the Asia-Pacific region face major environmental challenges that will intensify in

SECTION the coming years. The paper also recognises that sustainable development can be promoted by addressing environmental challenges to growth. This can be done through an environment strategy focusing on climate change and adaptation, water, and strengthening environmental regulatory regimes.

276 APPENDICES I. ECOLOGICALLY SUSTAINABLE DEVELOPMENT

How the outcomes specified for AusAID contributed to ecologically sustainable development in 2007–08 (section 156A (6)(b))

Two outcomes were specified for AusAID in 2007–08: • Outcome 1: To assist developing countries to reduce poverty and achieve sustainable development, in-line with Australia’s national interest. • Outcome 2: Australia’s national interest advanced by implementing a partnership between Australia and Indonesia for reconstruction and development.

Outcome 1: In 2007–08, AusAID’s activities under Outcome 1 contributed to ecologically sustainable development through a range of programs at the country, regional and global levels. AusAID managed the Climate Change Partnerships Initiative and, with the Department of Climate Change, the International Forest Carbon Initiative. AusAID also managed contributions to multilateral environment programs and contributed to the development of the International Climate Change Adaptation Initiative for implementation in 2008–09.

Outcome 2: AusAID’s activities relating to the Australia-Indonesia Partnership for Reconstruction in 2007–08 contributed to ecologically sustainable development through range of initiatives.

For example, the design and construction of infrastructure included environmental requirements: • The Basic Education Program, which is building 2000 schools across Indonesia, requires that school construction committees do their best to ensure that construction materials are sourced from sustainable and renewable sources. Where these materials are not available, 20 trees must be planted for a one-roof school, and 50 trees for a new school unit, within or around the construction site to replace those which were cut down to provide wood for construction. • Reconstruction in Aceh was also required to use sustainably harvested timber. • The program to build hundreds of kilometres of roads and bridges across eastern Indonesia includes environmental and social safeguards. The design phase undertaken in 2007–08 requires that environmental impact assessments will be undertaken,

environmental impacts must be mitigated and monitored, and an environmental SECTION specialist must monitor and review the construction and supervision processes.

Australia also funded a rapid environmental assessment by the International Finance Corporation and Wetlands International of an aquaculture rehabilitation site at Gandapura, which recommended planting mangroves in combination with prawn production to further protect the coastal lands. 5

In support of the Governor of Aceh’s green plan, commodity studies were conducted on palm oil, cocoa and coffee, which will help set parameters for investment and assist in the adoption of environmentally sound investment policies.

277 AUSAID ANNUAL REPORT 2007—2008

Effects of AusAID’s activities on the environment in 2007–08 (section 156A (6)(c))

AusAID launched its corporate environmental policy during the year, which identifies the agency’s activities associated with air travel, energy and water consumption, and generation of waste, as having negative effects on the environment.

Environmental priorities

To exemplify its commitment to sound environmental practices, AusAID gives priority to reducing waste and air travel, and improving energy management, water conservation and green procurement.

Environmental management system

In 2007–08, AusAID completed its environmental management system to help it efficiently address the priorities outlined above. AusAID’s system is developed to fully comply with the requirements of the International Standard Organisation (ISO 14001:2004) for environmental management. In addition, the agency acquired an environmental management software program to help manage its system.

Measures AusAID is taking to minimise its impacts on the environment (section 156A (6)(d))

Environmental management system and environmental awareness campaign

As well as developing an environmental management system, AusAID stepped-up environmental awareness campaigns during the year to educate its staff in Canberra about sound corporate environmental practices in their day-to-day office activities.

Green building

AusAID is located in two buildings in Canberra: these are at 255 London Circuit and 20 Allara Street.

The 255 London Circuit site was built according to environmentally sustainable design principles. It features the latest in environmentally sustainable cooling systems—chilled 5

beams, which work by reticulating chilled water through beams in the ceiling space and radiating cooled air through a perforated metal ceiling.

The office space is also supplied with 100 per cent fresh air and plenty of natural light, making it a productive and efficient environment in which to work. Storm water is captured

SECTION onsite and used in toilets and for watering gardens. Low volatile organic compound materials and a high component of recyclable construction materials have been combined with the leading edge technological cooling systems to create a building that has a 5 star Green Star accreditation from the Australian Building Greenhouse Rating scheme and the Australian Greenhouse Office.

AusAID expects to reduce energy consumption by up to 47 per cent a year compared to a conventional building. It is anticipated that the building will reduce carbon dioxide emissions by 586 tonnes a year.

278 APPENDICES I. ECOLOGICALLY SUSTAINABLE DEVELOPMENT

The fit out of the building at 20 Allara Street was designed to meet the Australian Government’s 4.5 Star Australian Building Greenhouse Rating requirement.

Reduced energy consumption

AusAID reduced its energy consumption in 2007–08 as a result of relocating to the new buildings. The following table shows the agency’s energy consumption and its associated greenhouse gas emissions over four years.

AusAID’s energy consumption and greenhouse gas emissions for 2004–2008

Office—tenant light and power 2004–05 2005–06 2006–07 2007–08 Electricity usage (kWh) 941 013 1 266 427 1 499 069 1 056 784 Green power usage (kWh) –141 151 –101 314 –121 556 –105 678 Total GJ 3388 4559 5397 3804 Area (m2) 9929 9948 10 100 12 515 Number of buildings 1 2 Occupancy (people) 564 622 673 718 MJ/m2 341 458 534 303.8 MJ/building 5 396 648 1 902 000 MJ/people 6006 7330 8019 5298 m2/person 18 16 15 17.4 Stationary energy total (GJ) 3388 4559 5397 3404 Transport energy (GJ) 1057 1128 1275 1708 AusAID total energy (GJ) 4445 5687 6671 5112 Gross greenhouse gas emissions (tonnes) 1070.61 1414.52 1661.82 1231.26 Greenhouse gas offsets (tonnes) –148.89 –106.5 –127.13 –111.47 Net greenhouse gas emissions

(tonnes) 921.73 1308.02 1534.69 1119.79 SECTION

Source: Australian Agency for International Development OSCAR Report

Green energy

AusAID continues to demonstrate its commitment to sound corporate environmental 5 practices. In 2007–08, the agency purchased 10 per cent green energy for its domestic energy needs.

Recycled paper

To implement the objectives outlined in its corporate environmental policy, in 2007–08, AusAID stopped using 100 per cent virgin paper and began using paper with at least 60 per cent recycled content. Printers and copiers were also defaulted to duplex printing/copying.

279 AUSAID ANNUAL REPORT 2007—2008

AusAID waste management/recycling (tonnes)

2006–07 2007–08 Classified/unclassified waste – 35.271 Commingled waste 0.506 8.8 General waste 20.322 18.622 Cardboard 2.493 5.534 Paper towel 1.857 2.770

Ride to Work initiative

To reduce carbon emissions through motor vehicle use during the year, AusAID supported the Ride to Work initiative which provides incentives for staff to cycle to and from the work place. New and improved facilities were also provided for cyclists at 255 London Circuit and 20 Allara Street.

Mechanisms for reviewing and increasing the effectiveness of measures to minimise AusAID’s impacts on the environment (section 156A (6)(e))

AusAID has established an environmental management team called the Green Team. The team comprises staff from all levels of the agency and its primary role is to monitor environmental performance against established targets and objectives. AusAID’s environmental management system is also designed and managed in a way that integrates environmental management in the agency’s wider management processes. These mechanisms ensure that all staff are involved in reviewing environmental performance. 5

SECTION

280 APPENDICES I. ECOLOGICALLY SUSTAINABLE DEVELOPMENT SECTION

281 AUSAID ANNUAL REPORT 2007—2008

Suva Rani from Lalmonirhat district in the northwest of Bangladesh received a microfinance loan which AusAID officer, Hannah Derwent, talking with Monica she invested in a cow rearing business and sells milk Leauanke, former principal of the Loto Taumafai Education in the local markets. She is typical of the many poor Centre for children with physical disability, at the Pacific people who have brought their families out of poverty Disability Forum (National Women’s Forum) in Leauva’a, with a manageable loan and some financial advice, in Samoa in April 2008. The forum brought together this case from the AusAID funded BRAC microfinance disability organisations from the Pacific to discuss key program (formerly known as the Bangladesh Rural issues in the region as well as human rights and the Pacific Advancement Committee) Disability Forum’s Empowering Womens Action Plan Photo: BRAC Photo: Kristen Pratt

Opposite » A girl wears an AIDS awareness t-shirt in the Port Vila vegetable markets, Vanuatu. It reads “STOPEM AIDS, Kipim Promes, BE ACCOUNTABLE’. AusAID is supporting Vanuatu’s response to HIV, including increasing young people’s awareness of HIV and how they can protect themselves from infection Photo: Rob Maccoll

282 GLOSSARY AND INDEXES Section 6

Glossary Compliance index Index AUSAID ANNUAL REPORT 2007—2008

GLOSSARY

ACCESS Australian Community Development and Civil Society Strengthening

ACFID Australian Council for International Development

ADB Asian Development Bank

ADF Asian Development Fund

ADS Australian Development Scholarships

AIDS Acquired Immune Deficiency Syndrome

AIPRD Australia-Indonesia Partnership for Reconstruction and Development

ALAF Australian Leadership Awards—Fellowships

ALAS Australian Leadership Awards—Scholarships

ANAO Australian National Audit Office

ANCP AusAID-NGO Cooperation Program

APEC Asia-Pacific Economic Cooperation

APSED Asia Pacific Strategy for Emerging Diseases

ARHP Asia Regional HIV/AIDS Project

ASEAN Association of South East Asian Nations

ATSE The Australian Academy of Technological Sciences and Engineering

AusAID Australian Agency for International Development

AWAs Australian Workplace Agreements

AYAD Australian Youth Ambassadors for Development

B4MD Business for Millennium Development

BRAC Formally known as the Bangladesh Rural Advancement Committee

DAC Development Assistance Committee

6 DESC Development Effectiveness Steering Committee

FOI freedom of information SECTION 284 GLOSSARY

GEF Global Environment Facility

HIV Human Immunodeficiency Virus

IDA International Development Association

MDGs Millennium Development Goals

NARI PNG National Agricultural Research Institute

NGOs non-government organisations

ODA official development assistance

ODE Office of Development Effectiveness

OECD Organisation for Economic Co-operation and Development

OHS occupational health and safety

OIE World Organisation for Animal Health

PNG Papua New Guinea

RAMSI Regional Assistance Mission to Solomon Islands

SEAFMD South East Asia Foot and Mouth Disease Eradication Campaign

SES senior executive service

UNAIDS Joint United Nations Program on HIV/AIDS

UNDP United Nations Development Programme

UNFCCC United Nations Framework Convention on Climate Change

UNFPA United Nations Population Fund

UNICEF United Nations Children’s Fund

UNIFEM United Nations Development Fund for Women

VIDA Volunteering for International Development from Australia

WTO World Trade Organization SECTION

6 285 AUSAID ANNUAL REPORT 2007—2008

COMPLIANCE INDEX

This index is prepared from the checklist of annual report requirements contained in attachment F to the Requirements for annual reports approved by the Joint Committee of Public Accounts and Audit under subsections 63(2) and 70(2) of the Public Service Act 1999 on 18 June 2008.

Description Page Requirement Letter of transmittal iii, Volume 1 Mandatory Table of contents iii Mandatory Index 289 Mandatory Glossary 284 Mandatory Contact officer(s) ii Mandatory Internet home page address and Internet address for report ii Mandatory Director General’s review Review by departmental secretary 2 Mandatory Summary of significant issues and developments 2–7 Suggested Overview of departmentís performance and financial results 2–7 Suggested Outlook for following year 7 Suggested Significant issues and developments—–portfolio Portfolio departments— suggested Agency overview Overview description of department 8–10 Mandatory Role and functions 8 Mandatory Organisational structure 10 Mandatory Outcome and output structure 11–12 Mandatory Where outcome and output structures differ from PBS format, Nil to report Mandatory details of variation and reasons for change Portfolio structure 8–9 Portfolio departments— mandatory Report on performance Review of performance during the year in relation to outputs and 14–155 Mandatory contribution to outcomes Actual performance in relation to performance targets set out in 14–155 Mandatory PBS/ PAES Performance of purchaser/ provider arrangements 16–40, 115–123, If applicable, 124–126, mandatory 6

127–130, 170 Where performance targets differ from the PBS/ PAES, details 11–12 Mandatory of both former and new targets, and reasons for the change Narrative discussion and analysis of performance 14–155 Mandatory SECTION 286 COMPLIANCE INDEX

Description Page Requirement Trend information 2–7 Suggested Factors, events or trends influencing departmental performance 14–155 Suggested Significant changes in nature of principal functions/ services 2–8 Suggested Performance against service charter customer service 173 If applicable, standards, complaints data, and the departmentís response to mandatory complaints Social justice and equity impacts 22–40 Suggested Discussion and analysis of the departmentís financial 154–155 Mandatory performance Discussion of any significant changes from the prior year or 16–19 Suggested from budget. Summary resource tables by outcomes 154 Mandatory Developments since the end of the financial year that have Nil to report If applicable, affected or may significantly affect the department’s operations mandatory or financial results in future Corporate governance Statement of the main corporate governance practices in place 158–162 Mandatory Names of the senior executive and their responsibilities 158 Suggested Senior management committees and their roles 158–159 Suggested Corporate and operational planning and associated performance 14–155 Suggested reporting and review Approach adopted to identifying areas of significant financial or 161–162 Suggested operational risk and arrangements in place to manage risks Agency heads are required to certify that their agency comply 162 Mandatory with the Commonwealth Fraud Control Guidelines. Policy and practices on the establishment and maintenance of 162 Suggested appropriate ethical standards How nature and amount of remuneration for SES officers 165 Suggested is determined External scrutiny Significant developments in external scrutiny 163 Mandatory Judicial decisions and decisions of administrative tribunals 163 Mandatory Reports by the Auditor-General, a parliamentary committee 163 Mandatory or the Commonwealth Ombudsman Management of human resources Assessment of effectiveness in managing and developing human 164–169 Mandatory resources to achieve departmental objectives

Workforce planning, staff turnover and retention 264–267 Suggested SECTION Impact and features of certified agreements and AWAs 164–165, 266 Suggested Training and development undertaken and its impact 167–169, 267 Suggested Occupational health and safety performance 167–168 Suggested

6 287 AUSAID ANNUAL REPORT 2007—2008

Description Page Requirement Productivity gains 164 Suggested Statistics on staffing 264–267 Mandatory Certified agreements and AWAs 164–165, 266 Mandatory Performance pay 165 Mandatory Assets management Assessment of effectiveness of assets management 173–174 If applicable, mandatory Purchasing Assessment of purchasing against core policies and principles 170–172 Mandatory Consultants The annual report must include a summary statement detailing 170–172, Mandatory the number of new consultancy services contracts let during 273–274 the year; the total actual expenditure on all new consultancy contracts let during the year (inclusive of GST); the number of ongoing consultancy contracts that were active in the reporting year; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST). The annual report must include a statement noting that information on contracts and consultancies is available through the AusTender website. Competitive tendering and contracting Absence of provisions in CTC contracts allowing access by the 170–172 Mandatory Auditor-General Exempt contracts Contracts exempt from the AusTender 170 Mandatory Commonwealth Disability Strategy Report on performance in implementing the Commonwealth 168 Mandatory Disability Strategy Financial statements Financial Statements 177 Mandatory Other information Occupational health and safety (section 74 of the Occupational 167–168 Mandatory Health and Safety (Commonwealth Employment) Act 1991) Freedom of Information (subsection 8(1) of the Freedom of 268–271 Mandatory Information Act 1982) Advertising and Market Research (Section 311A of the 275 Mandatory Commonwealth Electoral Act 1918) Ecologically sustainable development and environmental 276–280 Mandatory performance (Section 516A of the Environment Protection and

6 Biodiversity Conservation Act 1999)

Other Discretionary grants Nil to report Mandatory Correction of material errors in previous annual report Nil to report If applicable, mandatory SECTION 288 INDEX

INDEX

A Indonesia, 74, 75, 153, 277 Aboriginal Australians, see Indigenous Laos, 96 Australians Pakistan, 113 accelerating economic growth, see Papua New Guinea, 45 economic growth and management see also food and nutrition; forestry; Access to Basic Education in Laos rural development initiative, 96 Aid and the environment strategy, 276 accountability, see governance; aid budget, see official development management and accountability assistance Aceh, 27, 79, 153, 277 Aid for Trade activities, 23, 40 ACFID, 127 aid modalities, 150–1 ACIAR, 75, 147 AIDS, see HIV/AIDS Addis Ababa Fistula Hospital, 109 AIPRD, see Australia-Indonesia Partnership Adelaide, 134 for Reconstruction and Development administered items, 12, 41–144, 154–5, airfares, Solomon Islands, 64 258 Allison Sudradjat Awards, 141 administrative disputes, Cook Islands, 58 anaemia, 99 administrative tribunal decisions, 163 ANAO, see Australian National Audit Office advertising, 275 ANCP, 127–8 human rights, 60 animal health, 83–4 procurements, 171 avian influenza, 61, 76, 84 advisory groups, see consultative Annual Global Development Conference, arrangements 134 Afghanistan, 34, 110–12, 119, 126, 137 annual performance reports, 17 photographic exhibition, 134 Annual Review of Development Afghanistan Compact, 110–11 Effectiveness, 6, 146 Afghanistan National Development key findings, 16 Strategy, 110–11, 112 anti-bullying policy, 168 AFP, 45, 60, 93, 147 anti-corruption, see corruption Africa, 21, 25, 108–9, 117, 118, 262 anti-people trafficking activities, 84–5 performance audits, 161 antiretroviral treatment for HIV, Papua New Sudan, 108, 122, 126 Guinea, 49 agency business plan, 159 antiviral medication for avian influenza, 61 agency overview, 8–12 APEC, 82, 124, 134, 135 agricultural research, 45, 111 apprenticeship training, see technical and agriculture, 29, 82 vocational training Afghanistan, 111 APS Values and Code of Conduct, 162 SECTION Bangladesh, 102–3 APSED, 84 East Timor, 94 aquaculture, 153, 277 Fiji, 67 arsenic contamination of drinking water, 36

6 289 AUSAID ANNUAL REPORT 2007—2008

ASEAN, 82, 84, 126, 137 Australia-Indonesia Partnership for Asia, 25, 70–107, 110–14, 259–60, Reconstruction and Development 261–2 (AIPRD), 152–3, 277 Asia-Australia Mental Health facility, 92 effectiveness, 20 Asia-Pacific Economic Cooperation, 82, finance, 152, 155, 258, 261 124, 134, 135 Australia-Middle East non-government Asia-Pacific Forum of National Human organisation cooperation agreement, Rights Institutions, 139 114 Asia Pacific Strategy for Emerging Australia New Zealand School of Diseases (APSED), 84 Government, 39 Asia Transboundary Program, 83–5 Australia-Pacific Technical College, 25, 50, Asian Development Bank (ADB), 119–20, 62 136, 150 Samoan training centre, 68 Greater Mekong sub-region, 97 Australia Pakistan Scholarships Program, Pacific partnerships, 57, 68, 120 113 Asian Development Fund (ADF), 120, 263 Australia-Philippines Development assets, 173–4 Assistance Strategy, 90 Association of Southeast Asian Nations, Australia-PNG Forest Carbon Initiative, 44 82, 84, 126, 137 Australian Broadcasting Commission, 147 ATSE Crawford Fund annual conference, Australian Bureau of Statistics, 58 134 Australian Centre for International Attorney-General’s Department, 147 Agricultural Research, 75, 147 Audit Committee, 161 Australian Council for International audit competencies and capabilities, 58 Development, 127 Philippines, 91 Australian Customs Service, 148 Samoa, 68 Australian Defence Force, 45, 125 Solomon Islands, 65 Australian Development Research Awards, 143 audits, 154, 161 Australian Development Scholarships, 76, see also reviews and evaluations 113, 140 AusAID Development Research Program, Africa, 109 143, 263 Mongolia, 99 AusAID Disability Action Plan 2007–2010, 168 Vietnam, 88 AusAID-NGO Cooperation Program, 127–8 Australian Electoral Commission, 147 AusAID 2010—Director General’s Australian Federal Police, 45, 60, 93, 147 blueprint, 6, 9 Australian Leadership Awards, 39, 76, Austcare, 114 140–2 AusTender, 170, 171 Vietnam, 88 Australia Day Achievement Awards, 169, Australian National Audit Office, 148, 161, 267 162, 172

6 financial statements audit, 154

Australia-Indonesia Partnership Country Strategy 2008–2013, 72–3, 132 Australian National University, 58 Australian Office of Financial Management, 148 SECTION 290 INDEX

Australian Public Service Commission, 39, bridges, 64, 152 147 briefs, 145 Australian Public Service Values and Code Brisbane, 134 of Conduct, 162 Britain, see United Kingdom Australian Regional Development Budget 2007–08, 26 Scholarships, 143 Budget 2008–09, 3–4, 117, 145, 146 Australian Scholarships, see scholarships Building demand for better governance Australian Sports Commission, 117, 148 initiative, 140 Australian Sports Outreach Program, 117 bullying, 168 Australian Volunteers International, 129 Bureau of Meteorology, 58 The Australian Women’s Weekly, 133 Burma, 26, 83, 84, 98–9 Australian workplace agreements (AWAs), Cyclone Nargis, 98, 125 164–5 official development assistance, 261 Australian Youth Ambassadors for official development assistance (ODA), Development (AYAD), 129, 130, 263 81, 98 Fiji, 139 Burnet Institute World AIDS Day Concert, Mongolia, 99 135 Vietnam, 130 business and corporate planning, 159 Australia’s aid policy, 276 business development avian influenza, 61, 76, 84 Bangladesh, 102–3 aviation competition, Solomon Islands, 64 East Timor, 94 Avoidable Blindness Initiative, 19 Fiji, 67 awards (educational), see scholarships Nepal, 106 awards (recognition), 34, 69 Sri Lanka, 104 staff, 169, 267 Tonga, 69 Azad Jammu, 113 see also income generation B Business for Millennium Development (B4MD), 5 B4MD, 5 Balochistan, 113 C Bangkok, 6 Cairns, 124, 134 Bangladesh, 100, 101–3, 118, 120, 262 Call to Action, 4 basic education, see education Cambodia, 25, 95 Benin, 25 Greater Mekong sub-region, 96–7 Beyond WTO program, 88 human trafficking commitment, 84 Bhutan, 101, 106, 107, 262 official development assistance (ODA), bird flu, 61, 76, 84 81, 95, 261 births, see sexual and reproductive health Survivors photographic exhibition, 134 blindness, eyes and vision, 19, 91, 111, trade, 82 113 volunteer workshop, 129 SECTION Bougainville, 47 Cambodian treasury, 95 BRAC, 101–2 Cameroon, 118 Brick by brick, 82 Canada, 137

6 291 AUSAID ANNUAL REPORT 2007—2008

capacity building, see economic growth Clearing for Results initiative, 95 and management; education climate change, 35–36, 123, 147 CARE Australia, 114 Greater Mekong sub-region, 97 Caribbean countries, 117 Pacific island countries, 63 cash flows, 155 Clinton Foundation, 30, 49, 91 Central Asia and Middle East, 21, 110–14, code of conduct, 162 137, 260, 262 collective agreement, 165, 266 see also Afghanistan; Pakistan Comcare, 168 Central Emergency Response Fund, 126 Committee for Development Cooperation, Central Java, 74 160 Centre for Brackishwater Aquaculture Commonwealth Disability Strategy, 168–9 Development, 153 Commonwealth Ombudsman, 58, 163 Challenging the Frontiers of Poverty Commonwealth organisations, 117–18, Reduction program, 102–3 263 Chief Economist, 159 Commonwealth Procurement Guidelines, children, 31–2, 121, 122 171–2 Afghanistan, 34 communicable diseases, see infectious Africa, 109 diseases Bangladesh, 101 communication programs, see information, child protection policy, 138 education and communication programs Indonesia, 79 community development, 78, 91 Laos, 34 see also rural development Mongolia, 99 community engagement, 133–5 Nepal, 106 community programs, 127–30, 263 Papua New Guinea, 3, 117 condoms, 49, 122 Philippines, 31, 90 conferences, 58, 134–5, 144, 146–7 Solomon Islands, 139 donors, 114 see also education; Millennium International Conference in Support of Development Goals; young people Afghanistan, 112 China, 30, 83, 91–3 Leadership Development, 141 official development assistance (ODA), UN Framework Convention on Climate 81, 91, 261 Change Parties, 123 China Centre for Disease Control, 92 Vanuatu, 56 churches, 43–5, 65 see also seminars and other forums Cities Alliance, 37 consultants, 170, 273–4 civil society, 117, 139–40 consultative arrangements, 159–60, 269 Africa, 108 with staff, 168 East Timor, 94, 139 continuous improvement, 151, 171 Indonesia, 78 contract services, see purchasing Nepal, 106 Cook Islands, 58, 60, 70, 261 6 see also elections; peace building cooling system, AusAID building, 278 classification of staff, 264, 266–7 corporate governance, 158–62 SECTION 292 INDEX

corporate planning, 159 D corruption, 38 Dansavanh-Lao Bao border crossing, 97 Pacific, 61, 69 Darfur, 108, 122 costs, see finance deaf people, 129 counselling for staff, 164, 168 debt relief, 40, 118 country and regional programs, 21, deforestation, see forestry 41–114, 259–62 Delivering as One UN pilot country annual performance reports, 17 initiative, 116–17 Annual Review of Development demining, see mines and unexploded Effectiveness finding, 16 ordnance country and regional strategies, 18, 136, Democratic Governance Program, 43 145 Democratic People’s Republic of Korea, Asia, 83 126 Indonesia, 72–3, 132 democratic systems, strengthening of, 94, court decisions, 163 106, 108 court systems, see law and justice see also elections and electoral Crawford School of Economics and processes; governance Government, 58 Department of Agriculture, Fisheries and cross agency program, 136–44 Forestry, 147, 148 CSIRO, 97 Department of Climate Change, 36, 147 cultural awareness training course, 169 Department of Defence, 147, 148 culturally and linguistically diverse Department of Education, Employment and backgrounds, staff from, 266 Workplace Relations, 147 curriculum and curriculum development, Department of Environment, Water, 135 Heritage and the Arts, 147–8 Fiji, 67 Department of Finance and Deregulation, Indonesia, 28 147, 148 Kiribati, 70 Department of Foreign Affairs and Trade, Nauru, 70 134, 147, 148 Papua New Guinea, 47 Department of Health and Ageing, 58, 148 Philippines, 26 Department of Immigration and Citizenship, 147 Vanuatu, 62 Department of Infrastructure, Transport, Curtin University of Technology, 141 Regional Development and Local customs operations, 69, 97 Government, 148 Cuu Long Delta Rural Water Supply and Department of the Prime Minister and Sanitation Project, 37 Cabinet, 147, 148 cyclones Department of the Treasury, 147, 148 Bangladesh, 102 deputy directors general, 158, 159, 161 Burma, 98, 125 designated work groups, 168 Fiji, 67 SECTION Development Assistance Committee (DAC), Papua New Guinea, 45–6 5, 136

6 293 AUSAID ANNUAL REPORT 2007—2008

development banks, see Asian Sichuan earthquake, 30, 92 Development Bank; World Bank Group see also Cambodia; East Timor; development education, 135 Indonesia; Laos; Philippines; Vietnam Development Effectiveness Steering East New Britain, 45 Committee, 159–60 East Timor, 22, 25–26, 55, 56, 93–4 Development Research Program, 143, 263 cross agency programs, 136 diarrhoea, 32 IDA allocation, 119 direct mail organisations, 275 media, 94, 133, 139 Director General, 9, 147, 158, 159 official development assistance (ODA), year in review, 2–7 81, 93, 261 disability, people with, 18–19, 272 eastern Indonesia, 74, 75, 152 China, 91 ecologically sustainable development and Indonesian students, 76 environmental performance, 276–80 Mongolia, 99 economic growth and management, 22–5, in Pacific, 129 117 staff, 168–9, 266 Africa, 108 Disability Action Plan 2007–2010, 168 Cambodia, 95 disaster management, 124–6 East Asia region, 82–3 East Timor, 94 East Timor, 93–4 Vietnam, 89 Indonesia, 73–4 see also emergency, humanitarian and Laos, 82, 96 refugee programs Nauru, 69 displaced persons, see refugees Pacific region, 54–5, 58 displays and exhibitions, 133, 134 Papua New Guinea, 38, 43, 45, 54 diversity, workplace, 169, 266 Philippines, 91 documents, 269 Solomon Islands, 38, 64, 65 media releases, 132 South Asia, 106 supporting ethics and values, 162 Tonga, 69 see also publications Vanuatu, 65 Doha round, 83 Ecumenical Centre for Research, Education drug users, injecting, 30, 83, 106 and Advocacy, 128 drugs and other medical supplies, 47, 69 education, 21, 25–7, 117 Afghanistan, 111 E Bangladesh, 101, 102 e-commerce, 82 Burma, 99 earthquakes, 58 Fiji, 62, 67 China, 30, 92 general equality, 28 Indonesia, 74, 79 global/development, 135 Maldives reconstruction, 107 Indonesia, 25, 27, 28, 71, 74, 76, Pakistan, 113 132; Nusa Tenggara Timur, 77 6 Solomon Island, 65 Kiribati, 70 East Asia, 21, 26, 81–100, 259, 261 Laos, 96 Cyclone Nargis, 98, 125 Mongolia, 99 SECTION 294 INDEX

Nauru, 70 Solomon Islands, 65 Nepal, 106 Sri Lanka, 104, 126 Pakistan, 113 see also World Food Programme Papua New Guinea, 42, 43, 47, 117 employment and employment generation, Philippines, 26, 27, 90; school water 29 and sanitation facilities, 31 Afghanistan, 111 see also Millennium Development Cambodia, 95 Goals; scholarships; technical and East Timor, 94 vocational training; training Mongolia, 99 Education for All Fast Track Initiative, 25 see also business development; income effectiveness, 6–7, 16–40 generation elections and electoral processes energy use and efficiency, 279 Africa, 108, 118 Enhanced Cooperation Program (Strongim Cambodia, 95 Gavman Program), 42, 43, 148 East Timor, 94 Enterprise Challenge Fund for the Pacific Fiji, 67 and South East Asia, 2–3 Indonesia, 78; Aceh Jaya district, 153 enterprise development, see business Papua New Guinea, 28, 43, 118 development Thailand, 100 environment and sustainable resource electricity, 279 management, 21, 35–7, 123, 147, 263 Greater Mekong sub-region, 97 AusAID, 276–80 Nauru, 69 China, 93 Samoa, 68 Greater Mekong sub-region, 97 electronic publications, 135, 272 Indonesia, 71, 73–4 elementary education, see education Pacific region, 63; fisheries, 57 emergency, humanitarian and refugee see also agriculture; forestry; water programs, 21, 124–6, 263 supply and sanitation Afghanistan, 113 environmental management system (EMS), 278 Africa, 108 ergonomic workstation assessments, 168 Bangladesh, 102 ethics and values, 162 Burma, 125 Ethiopia, 109 China, 92 ethnic minorities, see indigenous peoples East Timor, 93 and ethnic minorities Fiji, 67 European Union, 65 Indonesia, 71, 74, 79 evaluations, see reviews and evaluations Iraq, 110 Executive Committee, 158 Palestinian territories, 114 exempt contracts, 170 Papua New Guinea, 43, 45–6 exhibitions and displays, 133, 134 photographic exhibition, 133

external scrutiny, 163 SECTION Sexual and Reproductive Health eyes and vision, 19, 91, 111, 113 Program in Crisis and Post Crisis Situations in East, Southeast Asia and the Pacific, 30

6 295 AUSAID ANNUAL REPORT 2007—2008

F Focus, 135 Family Court of Australia, 78 Food and Agriculture Organization, 75 family law issues, Indonesia, 78 food and nutrition, 125, 147 family planning, 122 Afghanistan, 111 China, 93 Africa, 108 Federal Court of Australia, 59 Bangladesh, 102 Federated States of Micronesia, 58, 60, East Timor, 94 70, 261 Greater Mekong sub-region, 97 females, see women Indonesia, 79 fiduciary risk and procurement diagnostic Iraq, 110 assessments, 150 Laos, 96 Fiji, 62, 63, 67, 118, 128–9 Moldova, 122 Office of the High Commissioner for Pakistan, 113 Human Rights, 139 Palestinian refugees, 114 official development assistance (ODA), Papua New Guinea, 117 51, 67, 261 see also agriculture; Millennium tsunami warning capacity, 58 Development Goals Fiji National Disaster Management Office, food prices, 23 67 foot and mouth disease, 83–4 Fiji Network of Positive People (FJN +), 62 forestry, 35–36 Fiji Red Cross, 67 Burma, 99 Fiji School of Medicine, 62 Indonesia, 73–4 Fiji Women’s Crisis Centre, 67 Papua New Guinea, 44 Fijian Association of the Deaf, 129 Solomon Islands, 139 finance, 154–5, 178–252, 258 Sri Lanka, 103 purchasing, 170–2, 273–5; contract Forum Fisheries Agency, 57 disputes, 173 forums, see conferences; seminars and staff remuneration, 164–5, 266 other forums see also official development fragile states, 119, 136–7 assistance Annual Review of Development financial loans, 54 Effectiveness finding, 16 Afghanistan, 111 France, 136 Tonga, 69 fraud control, 162 financial management programs, China, 93 see economic growth and management see also corruption financial statements, 154, 178–252 freedom of information, 268–71 fingerprint identification, 60 Freeman, Cathy, 48 Finland, 68 fruit production, 113 fisheries, 57 Fukuyama, Professor Francis, 136 aquaculture, 153, 277 6 full-time staff, 264 fistula, 109, 122 functions and role, 8, 268–9 Fittler, Brad, 132 Future Directions in Pacific Policing Policy, floods, 45–6, 126 60 flu, see influenza SECTION 296 INDEX

G Pacific, 38, 58–61, 64–5, 68, 69; Gambia, 118 women and, 28 GarudaFood, 75 Palestinian Authority, 114 GAVI Alliance, 32 Papua New Guinea, 42, 43–5, 136 Gaza, 114 Public Sector Linkages Program, 82 gender equity, 28, 85, 134 Solomon Islands, 64–5, 117, 135 ASEAN assistance, 82 Thailand, 100 Greater Mekong sub-region, 97 see also civil society; economic growth and management; law and justice Indonesia, 28, 74, 77 Government Partnerships Fund, 152–3 see also women and girls graduate recruitment, 166 gender of staff, 264–7 Greater Mekong sub-region, 6, 37, 96–7 Geoscience Australia, 124 green energy, 279 girls, see women and girls Green Team, 280 Global Alliance of Vaccines and Immunisation (GAVI Alliance), 32 greenhouse gas emissions, 279 Global Centre for the Responsibility to International Forest Carbon Initiative, Protect, 124 37, 73–4 Global Development Conference, 134 Guadalcanal, 64 global education, 135 Guyana, 118 Global Environment Facility (GEF), 123, H 263 Haemophilus influenza type b, 3 Pacific Alliance for Sustainability, 63 Hamlin Addis Ababa Fistula Hospital, 109 Global Fund to Fight AIDS, Tuberculosis harassment and anti-bullying policy, 169 and Malaria, 121 Hawke Centre, 133 Malawi, 109 health, 3, 21, 30–5, 117, 121–2 Global Partnership on Output Based Aid, Afghanistan, 111 23 Africa, 109 global programs, 21, 115–44, 263 Bangladesh, 102 global trade, see trade Burma, 99 Global Trust Fund, 83 China, 91 Good Office for Peace Programme, 118 East Timor, 93, 94 governance, 21, 38–9, 117, 139–40 Indonesia, 71, 74, 75, 76 Afghanistan, 111 Kiribati, 70 Africa, 108–9 Laos, 96 AusAID, 158–62 Nauru, 70 Bhutan, 106 Nepal, 31–2, 106 Cambodia, 95 Pacific regional programs, 61–2 China, 93 Pakistan, 113 East Timor, 93–4, 139 Palestinian territories, 114 SECTION Indonesia, 71, 78 Papua New Guinea, 3, 42, 43, 47, 49, Iraq, 110 117 Nauru, 69–70 Solomon Islands, 62, 65

6 297 AUSAID ANNUAL REPORT 2007—2008

Tonga, 58 human rights, 117, 137–9 Vanuatu, 62, 65 China, 93 see also emergency, humanitarian and Pacific region, 60 refugee programs; food and nutrition; see also disability, people with; women infectious diseases; water supply and and girls sanitation Human Rights Fund, 137–9 health and safety, occupational, 167–8 Human Rights Small Grants Scheme, 137 health education and training, 30, 122 human trafficking, 84–5 China, 92 humanitarian relief, see emergency, East Asia region, 83 humanitarian and refugee programs Fiji School of Medicine, 61 hunger reduction, see food and nutrition; Indonesia, 34, 76 Millennium Development Goals Iraq, 110 I Kiribati, 70 ICAAP 8 conference, 134 Nepal, 32 immunisation and vaccination, 32 Pakistan, 113 East Timor, 117 Papua New Guinea, 30, 47, 49 Papua New Guinea, 3 Heavily Indebted Poor Countries Initiative, Philippines, 31, 90 118, 263 staff, 168 High Level Panel on United Nations System-Wide Coherence, 116 incidents reported to Comcare, 168 high school education, see secondary income generation education Bangladesh, 102–3 higher education, 99 East Timor, 94 see also scholarships Laos, 96 Highlands Highway, 45 Philippines, 91 HIV/AIDS, 30, 34–5, 121, 134, 135 Sri Lanka, 104 Asia Regional Project (ARHP) review, 83 see also business development China, 83, 91 India, 37, 100, 106–7 consultation paper, 3 official development assistance (ODA), Greater Mekong sub-region, 97 101, 260, 262 Indonesia, 30, 76 Indigenous Australians, 6, 129, 169 Mongolia, 99 staff, 266 Pacific region, 61, 62 indigenous peoples and ethnic minorities Papua New Guinea, 48, 49, 132 Nepal, 106 Solomon Islands, 65 Philippines, 27 South Asia, 106 Vietnam, 85–6, 87 Vietnam, 30, 83 Indonesia, 70–80, 132, 137, 148 see also Millennium Development Goals Allison Sudradjat Award recipients, 141 HIV/AIDS Asia Regional Program, 30, 83 corruption, 38 6 Honiara, 64 education, 25, 27, 28, 71, 74, 76, 132; Nusa Tenggara Timur, 77 horticulture, see agriculture HIV/AIDS, 30, 76 human resources, see staff SECTION 298 INDEX

human trafficking commitment, 84 internal audit, 161–2 media visits to, 133 internally displaced persons, 104, 108, natural hazard risk partnership, 124 110, 124 OECD Development Assistance International AIDS Society Conference, Commission peer review visit, 5 134 official development assistance (ODA), International Alerts Series, 133 71, 81, 261 International Center for Journalism, 139 performance audit, 161 International Climate Change Adaptation rural migrant workers, 139 Initiative, 36 water and sanitation, 23, 80 International Compact for Iraq, 110 see also Australia-Indonesia Partnership International Conference in Support of for Reconstruction and Development Afghanistan, 112 Indonesian National Procurement Office, International Development Association 38 (IDA), 118, 119, 263 Indonesian Public Procurement Office, 38 International Federation of the Red Cross Indonesian Red Cross, 79 and Red Crescent Societies, 34, 78, 92 Indonesian Supreme Court, 78 International Finance Corporation, 75, 277 infectious diseases, 61, 83–4 International Forest Carbon Initiative, 35, China, 91 73–4 Indonesia, 76 international forums, representation at, 56, 112, 114, 123, 146–7 Kiribati, 70 International Health Partnership, 121 malaria, 62; see also HIV/AIDS; immunisation and international organisations, see vaccination multilateral organisations influenza, 168 International Organization for Migration, 126 pandemic preparedness, 61, 76, 84 International Planned Parenthood Information and Knowledge Management Federation, 122 Committee, 158 International Refugee Fund, 126 information, education and communication programs, 131–5, 263 International Women’s Day, 134 on drug use and HIV prevention, 83 internet, 131, 135, 272 on human rights, 139 e-commerce, 82 information technology, see internet human rights advertisements, 60 infrastructure, 21, 22 Office of Development Effectiveness website, 160 Afghanistan, 111 procurement advertisements, 171 Greater Mekong sub-region, 97 Relief in sight website, 133 Indonesia, 71, 73, 152 intranet, 168 Pacific, 150 Iraq, 110, 137 Papua New Guinea, 22, 28, 43, 45 Islamic courts, Indonesia, 78 Solomon Islands, 64 SECTION Islamic NGOs, 78 see also school infrastructure Islamic schools and education, 27, 28, 74 injecting drug users, 30, 83, 106 inoculations, see immunisation and vaccination

6 299 AUSAID ANNUAL REPORT 2007—2008

J Cambodia, 95 Japan, 68 East Timor, 93, 94 Jaringan Pendidikan Pemilih untuk Rakyat, Indonesia, 78 78 Iraq, 110 Joint United Nations Program on HIV/AIDS Laos, 96 (UNAIDS), 121 Pacific, 58, 60–1, 68; Solomon Islands, Jordan, Iraqi refugees in, 110 38, 61, 64 journalists, 139 Papua New Guinea, 28, 38, 45, 47 judicial scrutiny, 163 Tonga, 59, 60, 69 judicial systems, see law and justice training about drugs and HIV prevention, 83 K training about human trafficking, 84 Kalala House, 64 leadership development, 117 Kalimantan Forest and Climate Pacific region, 28, 39, 135 Partnership, 73–4 staff, 167 Kandal Province, Cambodia, 95 see also scholarships Kashmir, 113 learning and development, see education; Kenya, 108, 109, 118 staff learning and development Khammouane Province, Laos, 96 Least Developed Countries Fund, 123 Khmer Rouge Tribunal, 95 Lebanon, 114 Kiribati, 33, 60, 62, 70 legal systems, see law and justice IDA allocation, 119 legal training and development, 60, 94 official development assistance (ODA), legislation, 82, 164, 165, 276 51, 70, 261 East Timor, 94, 139 Korea, 126 Solomon Islands, 64 L Tonga, 69 laboratory, Solomon Islands, 65 Lesotho, 108, 118 land mines, see mines and unexploded linguistically and culturally diverse ordnance backgrounds, staff from, 266 land tenure and administration, 56 literacy, see education Burma, 99 local government Cambodia, 95 Aceh, 153 Vanuatu, 23 Papua New Guinea, 45 Laos, 25, 26, 84, 96–7 Philippines, 28 groundwater monitoring, 36 locally engaged staff, 164 official development assistance (ODA), location of staff, 264, 265 81, 96, 261 low income households, 22 Sayaboury Province, 34 Lowy Institute New Voices Conference, 135 trade, 82, 96 M

6 Laos Minister of Education, 96 Making a Difference program, 136 law and justice Making land work, 56 Afghanistan, 111 Makira, 139 Burma, 99 Malaita, 64 SECTION 300 INDEX

malaria, 62 Cambodia, 95 Malawi, 108, 109 East Timor, 93 Maldives, 101, 107, 118, 262 Fiji, 67 male staff, 264–5, 267 Indonesia, 71, 74 Mali, 25 Laos, 96 management and accountability, 158–76 Nepal, 105 aid program, 149–51, 258 Pakistan, 113 mango production, 113 Papua New Guinea, 42, 49 Manus Province, PNG, 47 Samoa, 68 market research organisations, 275 Sri Lanka, 103 marriage, rape within, 28 Millennium Development Goals Call to Marshall Islands, 58, 70 Action, 116 maternal health, see Millennium Mindanao, 27, 90 Development Goals; sexual and Mine Action Strategy, 137 reproductive health mines and unexploded ordnance, 137 Mauritania, 25 Cambodia, 95, 134 media, 132 Laos, 96 East Timor, 94, 139 Lebanon, 114 Sri Lanka, 139 Minister, 9, 145, 146–7, 256 media advertising, 275 ministerial correspondence, 145 human rights, 60 Ministerial Meeting on HIV/AIDS, 134 procurements, 171 mobile telecommunications, Vanuatu, 66 medical services, see health Moldova, 122 medical supplies and equipment, 47, 69 Mongolia, 25, 99, 261 Mekong River Basin, 6, 37, 96–7 Mongolia-Australia Targeted Capacity Mekong River Commission, 97 Building and Small Activities Facility, 99 Melbourne, 133, 134, 135 Mongolia Australian Scholarships Program, memoranda of understanding, 79 99 men staff, 264–5, 267 Montreal Protocol Multilateral Fund, 123 Meninga, Mal, 132 Mozambique, 25, 109, 161 mental health, 92, 114 Delivering as One UN seminar, 116 meteorology, see climate change Muhammadiyah, 79 microfinance, 54 multilateral organisations, 115–23, 263 see also income generation see also Asian Development Bank; Micronesia, 58, 60, 70, 261 United Nations; World Bank; World Middle East, 113–14 Health Organization see also Central Asia multilateral trade negotiations, 83 midwife training, Indonesia, 76 multisector programs, 21, 43, 71 Millennium Development Goals (MDGs), Murray Darling Basin Commission, 97 SECTION 2–4, 22–40, 116, 146 Muslim courts, 78 Bangladesh, 101 Muslim NGOs, 78 Business for Millennium Development Muslim schools, 27, 28, 74 (B4MD), 5 Myanmar, 99

6 301 AUSAID ANNUAL REPORT 2007—2008

N O Nahdlatul Ulama, 79 obstetric fistula, 109, 122 NAIDOC Week activities, 169 occupational health and safety, 167–8 national parliaments, women in, 29 OECD, 5, 150 National University of Samoa, 68 office accommodation, 278–9 natural disasters, see disaster Office of Development Effectiveness, 160 management; emergency, humanitarian Annual Review of Development and refugee programs Effectiveness, 6; key findings, 16 natural resource management, see country strategy reviews, 145 environment and sustainable resource Office of National Assessments, 147 management Office of the United Nations High Nauru, 51, 69–70, 261 Commissioner for Refugees, 126 Nauru Fisheries and Resource official development assistance (ODA), 4, Management Authority, 57 20–1, 145, 154–5, 259–63 Nauru Ministry of Finance, 69 Africa, 21, 108, 262 Nepal, 31–2, 105–6, 126, 137 Annual Review of Development official development assistance (ODA), Effectiveness finding, 16 101, 105, 262 community programs, 127, 129, 263 Nepal Education for All Program, 106 cross agency programs, 136–40, 143 New Britain, 45, 47 East Asia, 81–3, 86, 90, 91, 93, 95–9, New South Wales, 134, 135 259, 263; percentages of total, 21, 81 New Zealand, 53, 63, 65, 70, 150 emergency, humanitarian and refugee, Niue and Tokelau, 60, 70, 261 21, 124–6, 263 non-English speaking backgrounds, staff Middle East and Central Asia, 21, 110, from, 266 112–14, 260, 262 non-government organisations (NGOs), multilateral organisations, 115–23, 263 127–8, 160, 263 Pacific, 51, 64, 65, 67–70, 259, 261 Bangladesh, 101–2 Papua New Guinea, 41 Palestinian territories, 114 South Asia, 21, 100–1, 104–6, 260, non-ongoing staff, 264 262 non-salary benefits, 165 official development assistance (ODA), by North Korea, 126 sector, 21, 26, 31 Norwegian Refugee Council, 124 East Asian region, 84 Nuku’alofa, 69 Indonesia, 71, 75; International Forest nurses, 58 Carbon Initiative, 73 education and training, 70 Pacific region, 63 midwives, 76 Papua New Guinea, 43, 45; HIV/AIDS Nusa Tenggara Barat, 79 program, 49 Nusa Tenggara Timur, 77, 79 OHS, 167–8 nutrition, see food and nutrition OIE, 83 6

Ombudsman, 58, 163 ongoing staff, 264 operating results, 154–5 SECTION 302 INDEX

organisation and structure, 8–12, 158–60 Pacific Plan, 51 thematic groups, 7 Pacific Regional Digital Strategy, 40 Organisation for Economic Cooperation and Pacific Regional Infrastructure Fund, 150 Development, 5, 150 Pacific Regional Policing Initiative, 60 Oro Province, PNG, 45–6 Pacific Update seminar series, 58 Oruzgan province, Afghanistan, 111 Pakistan, 31, 113, 118, 126 outcomes, 11–155, 258, 277 ADF funding, 120 outlook, 7 Delivering as One UN pilot initiative, output-based aid, 23 116 outputs, 145–53, 258 official development assistance (ODA), overseas posts, 173–4, 264, 265 113, 262 employment terms and conditions, 164, Palau, 70 165 Palestinian territories, 113–14 learning and development, 167, 169 pandemics and emerging infectious regional hub offices, 6 diseases, 61, 76, 84, 91 ozone depleting substances, 123 paper use, 279–80 Papua, 30 P Papua New Guinea, 41–50, 54, 56, 136 Pacific, 21, 40, 51–70, 117, 259, 261 Allison Sudradjat Award recipients, 141 Australian Regional Development child immunisation, 3 Scholarships, 143 elections, 28, 43, 118 Good Offices for Peace Programme, governance, 38, 42, 43–5 118 HIV/AIDS, 48, 49, 132 IDA allocations, 119 law and justice, 28, 38, 45, 47 regional hub office, 6 natural hazard risk partnership, 124 state building, 136 official development assistance (ODA), Water Quality Initiative, 36 41, 43, 261 women and governance, 28 Tok Taim newsletter, 132 see also Fiji; Papua New Guinea; UNICEF activities, 117 Samoa; Solomon Islands; Vanuatu volunteer workshop, 129 Pacific Association of Supreme Audit Institutions, 58 see also Australia-Pacific Technical College Pacific Economic Bulletin, 58 Papua New Guinea-Australia Development Pacific Economic Survey 2008, 54–5 Cooperation Strategy 2006–2010, 41 Pacific Governance Support Program, 58–9 Papua New Guinea-Australia Ministerial Pacific Islands Forum, 4, 57 Forum, 41 Pacific Islands Forum Secretariat, 51 Papua New Guinea-Australia Sport for Pacific Land Program, 56 Development Initiative, 48 Pacific Leadership Program, 39 Papua New Guinea Business Coalition Pacific Malaria Initiative, 62 Against HIV/AIDS, 49 SECTION Pacific Partnerships for Development, 4, Papua New Guinea Churches Partnership 52–3 Program, 43–5 Papua New Guinea, 41 Papua New Guinea Commitment on Aid Samoa, 4, 68 Effectiveness, 42

6 303 AUSAID ANNUAL REPORT 2007—2008

Papua New Guinea Democratic Governance performance assessment and evaluation Program, 43 policy, 17–18, 151 Papua New Guinea Department of Finance, performance assessment framework, 43 16–18 Papua New Guinea Department of Health, performance-linked aid, 38 49 Tonga, 69 Papua New Guinea Department of performance management, 164 Treasury, 43 performance pay, 165 Papua New Guinea Enhanced Cooperation performance report, 16–155 (Strongim Gavman) Program, 42, 43 Performance Review and Internal Audit Papua New Guinea Key Roads for Growth Section, 161 program, 28 period offers, 170, 273 Papua New Guinea National Agricultural persistent organic pollutants, 63 Research Institute, 45 pharmaceuticals and medical supplies, Papua New Guinea National AIDS Council 47, 69 Secretariat, 49 Philippines, 22, 26, 38, 90–1, 127 Papua New Guinea Sports Foundation, 48 child immunisation, 31, 90 Paris Declaration on Aid Effectiveness, 42, corruption, 38 88 education, 26, 27, 90; school water Parliament, documents tabled in, 6 and sanitation facilities, 31 Parliament House, 134 extra-judicial killings, 139 parliamentary committees, 145, 163 foot and mouth disease, 84 parliamentary questions, 145, 146 gender equity, 28 Parliamentary Secretaries, 133, 145–6, natural hazard risk partnership, 124 256–7 official development assistance (ODA), launches by, 56, 143 81, 90, 261 part-time staff, 264 Water Quality Initiative, 36 participation and consultation, see Philippines-Australia Community Assistance consultative arrangements Program, 28, 91 Partnership for Maternal, Newborn and Philippines Institute for Indigenous Child Health, 33 People’s Education, 27 partnerships, 4–6, 147–8, 150–1 Philippines Social Protection Conditional environment, 37, 44 Cash Transfer Program, 38 governance sector, 58 photographic exhibitions, 133, 134 health sector, 32, 33, 34, 49 Placements Committee, 158 Pacific region, 58 planning, 159 see also Pacific Partnerships for pneumonia, 32 Development police services, see law and justice pay and remuneration, 164–5, 266 policy, 145–8, 258, 276 peace building, 60, 104 performance assessment and

6 peanut farmers, eastern Indonesia, 75

evaluation, 17–18, 151 peer reviews, 5, 150–1 polio inoculations, 90 people trafficking, 84–5 People’s Republic of China, see China SECTION 304 INDEX

political representation, 29 Making land work, 56 Philippines, 28 Pacific Economic Bulletin, 58 see also elections and electoral Pacific Economic Survey 2008, 54–5 processes Tok Taim newsletter, 132 polling organisations, 275 see also documents Port Moresby, 129 purchasing, 170–2, 273–5 Port Moresby Declaration, 52 contract disputes, 173 see also Pacific Partnerships for Development Q portfolio membership, 9 quality reporting system reports, 17–18 possible parliamentary questions, 145, questions on notice and in writing, 145 146 R poverty reduction, see Millennium Rakhine State, Burma, 99 Development Goals rape within marriage, 28 power generation, 68, 69, 97 rapid response team deployment pregnancy, see sexual and reproductive guidelines, 168 health reasonable adjustment principles, 169 price of outputs, 258 Reconciliation Action Plan, 6 primary education, see education recruitment, see staff recruitment Privacy Commissioner, 163 recycling, 279–80 private sector development, see business Tonga, 69 development Red Cross and Red Crescent, 34, 134 processes, 151 China, 92 procurement, see purchasing Fiji, 67 program expenditure, see official development assistance Indonesia, 79 program management, 149–51, 258 refugees and displaced persons, 124, 126 property management, 173–4 Afghan, 111 psychologist, 168 Africa, 108 public financial management, see Iraqi, 110 economic growth and management Palestinian, 114 public health, see health Sri Lanka, 103 public information programs, see Regional Assistance Mission to Solomon information, education and Islands (RAMSI), 64 communication programs regional programs, see country and public sector governance, see governance regional programs Public Sector Linkages Program, 82 Relief in sight photographic exhibition, 133 Public Service Act 1999 section 24(1) remuneration of staff, 164–5, 266 determinations, 164 renewable energy technologies, 97 Public Service Commission, 39, 147 reproductive health, see sexual and SECTION publications, 135, 270–1 reproductive health about landmines, 137 research, 143, 263 Annual Review of Development agricultural, 45, 111 Effectiveness, 6, 146; key findings, 16 fisheries, 57

6 305 AUSAID ANNUAL REPORT 2007—2008

fragile states, 136 Greater Mekong sub-region, 97 volunteer program, 129 Indonesia, 71, 73, 74, 75 resources, see finance; staff Papua New Guinea, 43 Resources Committee, 158 Vanuatu, 62, 65 RESULTS Australia, 134 Vietnam, 88, 97 reviews and evaluations, 18, 159, 161–2 see also agriculture; fisheries; forestry; Asia regional strategy, 83 water supply and sanitation Australia-Indonesia Partnership for Rwanda, 109 Reconstruction and Development, 152, S 153 safety, 167–8 country strategies, 18, 145 salaries and remuneration, 164–5, 266 Indonesia, 78 Samoa, 38, 58, 60, 68 non-government organisations, 127, 128 ADB loan, 120 Pacific audit institutions’ competencies IDA allocation, 119 and capabilities, 58 official development assistance (ODA), Papua New Guinea, 38; Strongim 51, 68, 261 Gavman Program, 42 Pacific Partnership for Development, 4, peer, 5, 150–1 68 South East Asia Foot and Mouth Sanap Wantaim, 49 Disease Eradication Campaign Sandaun Province, PNG, 47 (SEAFMD), 83–4 sanitation, see water supply and sanitation strategic partnership agreements, 147 satisfaction, 20 Ride to Work initiative, 280 Ministerial/Parliamentary Secretary, Rights Democracy and Inclusion Fund, 106 146 risk management, 150, 162 Savannakhet Province, Laos, 96 roads, 22 Save the Children Alliance, 106 Afghanistan, 111 Save the Children’s Primary Health Care Greater Mekong sub-region, 97 project, 34 Indonesia, 152 Sayaboury Province, Laos, 34 Papua New Guinea, 22, 45; women’s scholarships, 26, 140–3 access to employment, 28 Afghanistan, 111 Solomon Islands, 64 Africa, 109 role and functions, 8, 268–9 Australia-Pacific Technical College, 63 Royal PNG Constabulary, 45 Indonesia, 76, 141 rugby league, 132 Mongolia, 99 rural development, 21 Pakistan, 113 Afghanistan, 111 South Asia, 107 Bangladesh, 102–3 Vietnam, 88 Burma, 99 school infrastructure 6 Cambodia, 95, 97 Bangladesh, 102 East Timor, 94 Indonesia, 25, 28, 76, 132 Fiji, 67 Laos, 96 SECTION 306 INDEX

Nauru, 70 Sexual and Reproductive Health Program Pakistan, 113 in Crisis and Post Crisis Situations in Papua New Guinea, 47 East, Southeast Asia and the Pacific, Philippines: water and sanitation 30 (adds China to next) facilities, 31 The Shack photographic exhibition, 134 schooling, see education Sichuan earthquake, 30, 92 sea level analysis, 63 Sierra Leone, 25, 118 secondary education, 135 slum dwellers, 37 Indonesia, 25, 76, 132 small island states, 40 Kiribati, 62 see also Pacific Vanuatu, 62 solar electricity, 97 Secretariat of the Pacific Community, 57 solid waste management, Tonga, 69 seminars and other forums, 134–5, 263 Solomon Islands, 22, 56, 58, 64–5, 118, Australian Council for International 148 Development program, 127 cross agency programs, 136 Australian Leadership Awards cohorts, economic growth rate, 54 141 governance, 38, 64–5 Delivering as One UN, 116 law and justice, 38, 64; anti-corruption, environment and climate change, 63 61 fragile states, 136 malaria, 62 mine action workshops, 137 media visit to, 133 Pacific Update series, 58 official development assistance (ODA), Relief in sight, 133 51, 64, 261 sector-wide approaches workshop, 151 performance audit, 161 volunteer workshops, 129, 130 sexual exploitation of children, 139 see also conferences United Nations Development Programme funding, 117 Senate committees, 145, 163 Solomon Islands Law Reform Commission, Senate Order for Departmental and Agency 64 Contracts, 170 Solomon Islands Ministry of Finance and senior executive service (SES) staff, 164, Treasury, 38, 64 165, 264, 266, 267 Solomon Islands Ministry of Law and service charter, 173 Justice, 64 sex of staff, 264–7 Solomon Islands Parliamentary sexual and reproductive health (maternal Strengthening Programme, 117 health), 31, 33–4, 121, 122 South Africa, 108, 161 Bangladesh, 102 South Asia, 21, 100–7, 260, 262 China, 93 ADF funding, 120 East Timor, 93 Food Offices for Peace Programme, 118 Indonesia, 76 Water Quality Initiative, 36 Solomon Islands, 65 SECTION South East Asia Foot and Mouth Disease see also HIV/AIDS; Millennium Eradication Campaign (SEAFMD), 83–4 Development Goals South Pacific, see Pacific

6 307 AUSAID ANNUAL REPORT 2007—2008

speeches, 132 Papua New Guinea, 47 sport, 117 Philippines, 27 Papua New Guinea, 48, 132 technical and vocational training, 25, 26, Sri Lanka, 100, 103–4, 126, 137, 139 50, 62–3 ICAAP 8 conference, 134 Bangladesh, 102 official development assistance (ODA), land professionals, 56 101, 104, 262 Samoa, 68 staff, 164–9, 264–7 Vanuatu, 62, 63 staff learning and development, 167, 267 see also health education and training ethics and values, 162 telecommunications, Vanuatu, 66 ministerial and parliamentary services, television, human rights advertisements 146 on, 60 occupational health and safety, 168 tenders, see purchasing procurement practices, 171 tertiary education, see scholarships; Working Across Cultures training course, technical and vocational training 169 textbooks and reading materials, 25 staff recruitment, 164, 165–6 Indonesia, 28 indication courses, 162, 168 Kiribati, 62 stakeholder engagement, 133–5 textiles, clothing and footwear industry, State, Society and Governance in Fiji, 67 Melanesia Program, 58 Thailand, 82, 84, 99–100 statistical offices, 58 official development assistance (ODA), Strongim Gavman Program, 42, 43, 148 81, 99, 261 Strongim Komunity Klabs, 48 thematic groups, 7 submissions, 145 thematic knowledge management, 144 Sudan, 108, 122, 126 Three Delta Towns water supply and Sudradjat, Allison, 141 sanitation project, 130 SurfAid International, 78 Timor-Leste, see East Timor Survivors photographic exhibition, 134 Timor-Leste Media and Communications Suva, 6, 139 Program, 139 Swaziland, 108, 118 Tok Taim newsletter, 132 Sydney, 134, 135 Tokelau and Niue, 60, 70, 261 Syria, Iraqi refugees in, 110 Tonga, 58, 68–9, 118 IDA allocation, 119 T official development assistance (ODA), Tanzania, 108, 109 51, 68, 261 tax collection, Indonesia, 74 police, 60 teacher education and training, 25, 135 Tonga-Australia Performance Partnership Bangladesh, 101 Agreement, 69 Fiji, 62 Tonga Supreme Court, 59 6

Indonesia, 25, 28 Tongan Ministry of Health, 58, 69 Kiribati, 62 Torres Strait Islanders, see Indigenous Australians SECTION 308 INDEX

touring photographic exhibition, 133 U trade, 23, 40 Uganda, 108, 109, 118 Africa, 108 UNAIDS, 121 East Asia, 82–3, 88, 96 unexploded mines, see mines and Trade Analysis and Reform Project, 82–3 unexploded ordnance trafficking of people, 84–5 United Kingdom, 116 training, 118 United Kingdom Department for about drug use and HIV prevention, 83 International Development, 106 about human rights, 139 partnership agreement, 5 about human trafficking, 84 United Nations, 115–17, 136, 263 Afghan civil servants, 111 Central Emergency Response Fund, 126 Cambodian polling officials, 95 Protection Capacity Building East Timor, 94, 139 mechanism, 124 Indonesia, 79, 139 United Nations Children’s Fund (UNICEF), Iraqi officials, 110 26, 117, 126 Making a Difference program, 136 avian influenza communication protocols, 61 Papua New Guinea voter education, 28, 43 Bangladesh, 101–2 Solomon Islands women’s resource Junior APEC Forum, 135 centres, 65 Kiribati, 70 statistics office project management, Laos, 96 58 Mozambique, 109 see also business development; staff Philippines, 31, 90 learning and development; technical United Nations Development Fund for and vocational training Women (UNIFEM), 39, 117 Transboundary Program, 83–5 International Women’s Day, 134 transnational crime, 84–5 United Nations Development Group Office, Transparency International, 61 116 transport, 64 United Nations Development Programme, see also roads 60, 63, 117, 126 travelling photographic exhibition, 133 Clearing for Results initiative, 95 Treasury, 147, 148 Delivering as One UN pilot initiative, Trust Fund for Avian and Human Influenza, 116 84 United Nations Environment Program, 123 tsunami, 58 United Nations Framework Convention of Maldives reconstruction, 107 Climate Change, 123 Solomon Islands, 65 United Nations High Commissioner for Refugees, 126 tuberculosis, 134 United Nations Mine Action Service, 114 Kiribati, 70

United Nations Office for the Coordination SECTION Tuvalu, 58, 70, 261 of Humanitarian Affairs, 126 United Nations Office of the High Commissioner for Human Rights, 139

6 309 AUSAID ANNUAL REPORT 2007—2008

United Nations Population Fund, 70, 122 violence against women and children, 117 United Nations Relief and Works Agency, Fiji, 67 114 Indonesia, 78 United Nations World Food Programme, Papua New Guinea, 28 see World Food Programme Philippines, 28 United States Agency for International vision, 19, 91, 111, 113 Developments, 76 vitamin A, 106 Universal Declaration of Human Rights, 60 vocational training, see technical and university education, 99 vocational training see also scholarships volunteer programs, 129–30, 134, 263 University of Queensland, 136 see also Australian Youth Ambassadors utilities, 65, 68, 69 for Development; non-government V organisations Volunteers and Aid Effectiveness Forum, vaccination, see immunisation and 134 vaccination voting, see elections and electoral values and ethics, 162 processes Valuing Pacific fish framework, 57 Vanuatu, 38, 65–6, 136 W land conference, 56 wage employment, see employment land reform, 23 waste management, 63 malaria, 62 AusAID, 279–80 OECD Development Assistance Tonga, 69 Commission peer review visit, 5 Water Quality Initiative, 36 official development assistance, 51, water supply and sanitation, 36, 37 65, 261 Afghanistan, 111 police, 60, 68 Africa, 109 tsunami warning capacity, 58 China, 93 Vanuatu Governance for Growth, 66 East Timor, 94 Vava’u Declaration on Pacific Fisheries Greater Mekong sub-region, 97 Resources, 57 Indonesia, 23, 80 veterinary health, see animal health Laos, 36, 96 Vietnam, 30, 38, 85–9, 137 Nauru, 69 ADF funding, 120 Nepal, 106 foot and mouth disease, 84 Papua New Guinea, 117 Greater Mekong sub-region, 96–7 Philippines, 31 official development assistance (ODA), Vietnam, 88, 130 81, 86, 261 websites, 131, 135, 272 performance audit, 161 AusTender, 170, 171 trade, 82, 88 Development Assistance Committee,

6 water supply and sanitation, 88, 130

171 Vietnamese Department of Education, 91 Office of Development Effectiveness, Vietnamese Department of Public Works 160 and Highways, 91 Relief in sight exhibition, 133 SECTION 310 INDEX

West Bank, 114 Global Partnership on Output Based West New Britain, 47 Aid, 23 West Papua, 30 Greater Mekong sub-region, 97 Wetlands International, 277 Indonesia, 75, 76 whole-of-government engagement, 8 multi-year funding commitments, 26 OECD Development Assistance Palestinian territories, 114 Commission peer review, 5 political-economy analyses, 136 Windows on the world volunteering display, sector-wide approaches workshop, 151 134 Trust Fund for Avian and Human women and girls, 63, 117, 121, 136 Influenza, 84 Afghanistan, 111 Water and Sanitation Program, 109 Africa, 109 World Food Programme (WFP), 125, 263 Bangladesh, 102–3 Indonesia, 79 East Timor, 93, 94, 117 Laos, 96 Fiji, 67 Sudan, 108 Indonesia, 28, 77, 78, 79; Aceh, 153 World Health Organization, 76, 121 Laos, 96 Asia Pacific Strategy for Emerging Nepal, 106 Diseases (APSED), 84 Pacific region, 28, 39 World Organisation for Animal Health (OIE), Pakistan, 113 83 Papua New Guinea, 28, 38, 47 World Trade Organization (WTO), 83 Solomon Islands, 65 World Vision Australia, 114, 133 see also sexual and reproductive health worm infestation, 99 women staff, 264–7 X workforce planning, Tonga, 58 Xinjiang Province, 91 Working Across Cultures training course, 169 Y workplace agreements, 164–5, 266 year ahead, 7 workplace diversity, 169, 266 Yogyakarta, 74 workplace harassment and anti-bullying young people, 117, 135 policy, 169 Cambodia, 95 workplace health and safety, 167–8 East Timor, 94 workshops, see seminars and other see also Australian Youth Ambassadors forums for Development; children; education workstation assessments, 168 Z World Bank Group, 118–19, 121, 150, 263 Zambia, 108 Cities Alliance, 37 Zimbabwe, 108 Doing Business report on Tonga’s

Supreme Court, 59 SECTION Global Facility for Disaster Reduction and Recovery, 92

6 311 AUSAID ANNUAL REPORT 2007—2008 6

SECTION 312