Recently the Australian Coalition Government announced a 10% cut in International Aid. This may not seem like much however Australia’s aid budget is only 0.22% of its Gross National Income which equates to $3.8 billion. The economical amount may seem like a lot however it is only 22 cents per $100 in gross national income. That leads me to the UN foreign aid target.
The UN foreign aid target is at least 0.7% of a Country’s Gross National Income. This amount is so small in comparison to the National budgets and the amount of income a country is earning; however nearly all countries fail to meet this target. As of 2015 only seven countries met or exceeded this goal. Only seven countries seem to believe that foreign aid is important to them, that foreign aid is important to fund.
However, the countries that have spent the most amount of money on foreign aid is slightly different, as countries with larger economies (such as the US) have higher gross incomes and therefore can donate less when scaled to their incomes but more in numerical values. As seen below
Australia’s contribution to international aid does not make the top ten countries for contributions with either percentage or numerical amounts. Does this mean that Australia doesn’t see the importance of international aid?
International aid funds so many causes from food, medical care, drinking water to education and supporting economies. This may seem like it’s not our problem right? However, education has been proven to move people away from extremism, violence and crime, and also leads to people being more likely employed. This keeps Australia safe and can lead to better trade.
Two prime examples of where foreign aid has lead to better trade are China and South Korea. They were some of the largest receivers of foreign aid in the world; now they are some of the largest players in the international market, as well as being the top trading partners with Australia (1st and 3rd in 2017 respectively). If humanitarian, and safety reasons are not enough to demonstrate the importance of foreign aid, then economic value must be a sure fire way to. Foreign aid is like an investment and can lead to more trading partners, and economy boosts for not only the country receiving the aid, as well as the home country.
So with all this in mind foreign aid achieves a lot and would seem important. But here’s the kicker; Australia receives its own foreign aid through the Department of Immigration and Border Protection.
For me it’s a no brainer. Foreign aid is important; it improves the life of human beings all over the world, it boosts economies and is along term investment for the global community. It seems simple to me, but why is this not the case? Why is Australia contributing so little to foreign aid? Why is most of the International Community failing to reach the goal of 0.7% of Gross National Income to foreign aid? Again I am left with questions that I can’t answer. Again, I am left with questions that I hope I can one day answer and fix.