The Australian Government should be wary of cutting the $1.5 billion foreign-aid and trade promotion Budget. It sounds like a lot of money, but foreign-aid as a percentage of GDP going to foreign aid has steadily falling for more than a decade. It is an easy target.
The Foreign Minister, Alexander Downer, has ruled out cuts to aid to Papua New Guinea where Australia has a special moral responsibility, but cuts elsewhere, he has indicated, are inevitable.
The steady fall in Australia’s foreign aid can be seen as a reflection of a fall in our generosity. This has also been exacerbated by the change in the make up of the aid. A higher proportion is going to countries with which we are building a trade relationship and a lower proportion is going to the desperately poor countries of Africa.
Despite our Budget deficit and trade deficit, despite the fact that many Australians are reliant on social welfare or are struggling on incomes which are low compared to fellow Australians, Australia is still a very wealthy nation on the world scale. We should not turn our backs on those in need elsewhere in the world. Nor when we give should we allow trade and strategic thinking to dominate where, how and what aid should be spent. John Howard has talked about restoring family values. Well, there is a world family, too and Australia is part of it.