The news that Australia’s aid budget will be cut by 10% over the next two years is worrisome for education financing. Ausaid is now closed and development has been merged into its foreign affairs and trade ministries. Combined, these two major shifts in aid policy do not bode well for flows to the sector.
These announcements are somewhat of a turnabout: Australia’s aid to development has been on an upwards slant for the past decade. It has consistently increased the percentage of its GNI dedicated to development aid since 2002, with 0.34% dedicated in 2013. The country never signed itself up to the 0.7% target of GNI to development aid in the past – such a target might have prevented the decision to make such drastic cuts today.
Australia’s aid doubled in ten yearsNet disbursements of aid, 2002-2013
Hopes were high for aid from Australia among the education community before this recent announcement. Julia Gillard, Australia’s former prime minister, was previously education minister and demonstrated her loyalty to the sector in her aid budget during her term. The country’s aid to education increased by more than 100% from 2010 to 2012, and, although it allocated less to low-income countries in 2011 than it had the year before, that was reversed in 2012.
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