A New Way For Foreign Aid

The foreign minister Julie Bishop today announced a major reshape of how foreign aid is distributed. Whilst the amount of money going into aid has decreased in the budget, (from 7.6 billon to 5 billion dollars per year for three years, then to increase each year after that with CPI) the way it is spent and the way it is accounted for through a new performance framework and benchmark system has been introduced, that is tailored to each countries circumstances. One of the biggest changes is an embrace of using the Private Sector to meet the goals required for each project, as well as the merging of the AusAid organisation into the Department of Foreign Affairs and Trade (DFAT), therefore cutting administration costs.

 

You can read a good summary of changes to aid, here and here.