The Australian Government’s new development policy Australian aid: promoting prosperity, reducing poverty, enhancing stability and new performance framework Making Performance Count: enhancing the accountability and effectiveness of Australian aid introduce key shifts in our aid program.
The world has changed—and our aid program must change too. Today, many developing countries are growing rapidly, with aid representing an increasingly small proportion of development finance. To be effective in this new context, our aid needs to be more innovative and catalytic, leveraging other drivers for development, such as private sector investment and domestic finance. We need to recast our aid program in light of this new development paradigm.
The Australian aid program will focus on our Indo-Pacific region. We will have a sharper focus on our immediate neighbourhood—this is where we can make the most difference.
The purpose of the aid program is to promote Australia’s national interests by contributing to sustainable economic growth and poverty reduction. We will pursue this purpose by focusing on two development outcomes: supporting private sector development and strengthening human development.