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© Commonwealth of Australia 2000

ISSN 1032-2019
ISBN (Volume 2) 0-642-56611-9
ISBN (set) 0-642-56610-0
ISBN (electronic version) 0-642-50187-4

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth, available from AusInfo. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Legislative Services, AusInfo, GPO Box 1920, Canberra ACT 2601, or by email to

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Guide to the Report

Section 1: Overviews
Director General's Review
Agency Overview
Role and Functions
Organisational Structure
Outcome and Output Structure
Section 2: Report on Performance
Performance Information Framework
Effectiveness—Overall Achievement of Outcome
Performance in Key Result Areas
Country and Regional Programs
Global Programs
Output 1—Policy
Output 2—Program Management
Financial Results
Purchaser–Provider Arrangements
Service Charter
Social Justice and Equity
Section 3: Management and Accountability
Corporate Governance
External Scrutiny
Management of Human Resources
Purchasing and Assets
Consultants and Competitive Tendering and Contracting

Section 4: Financial Statements

Section 5: Appendixes
1. Ministerial Responsibilities
2. Staffing Overview
3. Freedom of Information
4. Information Available on the Internet
5. Consultancy Services
6. Contributions
7. Advertising and Market Research
8. Aid Advisory Council Members
9. Overseas Accreditation
10. Ecologically Sustainable Development and Environmental Performance
Section 6: Glossaries and Index
Glossary of Terms
Glossary of Acronyms and Abbreviations
Figure 1: AusAID Organisational Chart
Figure 2: AusAID Outcome and Output Structure, 2000–01
Figure 3: Total Australian aid flows by sector, 2000–01
Figure 4: Estimated direct expenditure for rural development by subsector, 2000–01
Figure 5: Estimated direct expenditure for education by subsector, 2000–01
Figure 6: Estimated direct expenditure for governance by subsector, 1996–97 to 2000–01
Figure 7: Estimated direct expenditure for health by subsector, 2000–01
Figure 8: Estimated direct expenditure for infrastructure by subsector, 2000–01
Figure 9. Total Australian aid to PNG 1995–2001
Figure 10: PNG program sectoral breakdown, 2000–01
Table 1. Resources summary for outcome
Table 2. Employees by classification, location and gender as at 30 June 2001
Table 3. Ongoing and non-ongoing employees, full-time and part-time
Table 4. Senior Executive Service gains and losses during 2000–01
Table 5. Senior Executive Service as at 30 June 2001
Table 6. AusAID employees by location and gender as at 30 June 2001
Table 7. AusAID Certified Agreement salary ranges as at 30 June 2001
Table 8. AusAID SES employee salary ranges as at 30 June 2001
Table 9. Expenditure on formal training activities
Table 10. Expenditure on additional training and development activities
Table 11. Breakdown of the five priority training activities
Table 12. Workplace diversity: representation of groups within levels
Table 13. Workplace diversity: engagement by level
Table 14. Website information
Table 15: Consultancies and contracts for services managed by AusAID
Table 16: List of consultancies
Table 17: Contributions made to international organisations
Table 18. Payments as specified under section 311A of the Commonwealth Electoral Act 1918
Table 19. AusAID representation at posts as at 30 June 2001

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This report is the Secretary's account to the Minister for Foreign Affairs and the Minister for Trade on the performance of the Department of Foreign Affairs and Trade (Volume 1) and the Australian Agency for International Development (AusAID) (Volume 2) during the financial year 2000–01. It is prepared in accordance with the Department of Prime Minister and Cabinet's Requirements for Departmental Annual Reports of June 2001, which draws on the legislative requirements set out in the Public Service Act 1999. Information and statistics cover the financial year 2000–01, or relate to the situation as at 30 June 2001.


The report of the Australian Agency for International Development (Volume 2) uses the same outcome–output structure that was used to present the agency's 2000–01 Portfolio Budget Statements.

Section 1 contains:

Section 2 contains the agency's outcome and output performance information reports, including:

This section also reports on performance against the two agency outputs—policy and program management. This includes an overview of results and systems for quality assurance, contracting services and financial management under accrual budgeting. This information, together with the resources summary table (page 13), allows an assessment of the contribution the agency's outputs make towards achieving the agency outcome, and whether these represent value for money.

To enhance the flow of performance information in Section 2 effectiveness indicators are listed at the beginning of reporting for the relevant section.

Section 3 reports on management and accountability systems that are distributed across outputs for performance information purposes. It also includes information on corporate governance, external scrutiny and management of human resources and service delivery.

Section 4 contains the audited Financial Statements for 2000–01.

Section 5 includes appendixes that give additional information and reports required under specific legislation.

Section 6 contains a glossary of terms, abbreviations and acronyms, and an index.

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Director General's Review

Agency Overview

Role and Functions

Organisational Structure

Outcome and Output Structure

Bruce Davis, AusAID Director General
Mr Bruce Davis, AusAID Director General

The past twelve months have been particularly challenging for Australia and Australia's aid program. Conflict in the Pacific, economic and political transition in Indonesia and nation building efforts in East Timor required intensive responses at the whole-of-government level in Australia, including a central role for the aid program.

Efforts to address these challenges, and others such as HIV/AIDS and the revolution in information and communications technology, were important components of the aid program's efforts to reduce poverty and achieve sustainable development.

Challenges and achievements

Country and regional programs

Nowhere have the challenges been greater than in the Pacific. The aid program played a key role in the Australian Government's effort to facilitate peace and security in Solomon Islands, Fiji and Bougainville. In 2000–01, Australian aid concentrated on supporting local peace initiatives, improved governance and basic service delivery. The aid program's experience on the ground, throughout the Pacific, also enabled the agency to make a valuable contribution to the Government's review of South Pacific foreign policy.

In Solomon Islands, the aid program supported formal and informal peace negotiations and the work of the International Peace Monitoring Team. Significant support was provided to the restoration of law and order and the maintenance of essential health services. Australia also provided a package of assistance for Fiji to hold new elections. Since the hostage crisis there in May 2000, most non-humanitarian aid activities had been suspended.

In Bougainville, the Australian aid program supported peace talks between the Government of Papua New Guinea (PNG), and Bougainvillean leaders. These talks recently led to a historic peace agreement for the province. The aid program contributed to the important operations of the Peace Monitoring Group and provided essential assistance in rehabilitating infrastructure and restoring health and education facilities in Bougainville.

PNG is Australia's largest single bilateral aid partner. In 2000–01, we completed a transition in our aid to PNG from untied budget support to jointly programmed activities. The PNG Development Cooperation Treaty came into force in July 2000. This includes performance benchmarks that the Government will use to decide future resource allocations. An innovative new program known as the Incentive Fund was also established to support a number of high-performing institutions. The fund promotes greater contestability and accountability of Australian aid to PNG. An important additional priority for the program is to support the momentum of the PNG Government's program of public sector reforms.

Australia continued to be at the forefront of international efforts to rebuild East Timor. The aid program evolved to meet changing development needs, moving from a successful emergency response to a program focused on building local capacity to support a stable and democratic country.

In June 2001, Australia successfully hosted the East Timor Donors' Meeting in Canberra. This meeting reached consensus on a range of issues relating to the country's administrative, political and financial transition. We also continued to provide practical assistance in restoring basic services in health and education, and strengthening the productive sectors of the East Timorese economy.

In 2000–01, the aid program was a positive element of Australia's overall relationship with Indonesia. Improving governance and strengthening social protection were the key aims of Australia's assistance. We delivered strong and consistent messages on the need to push ahead with the implementation of the Indonesian Government's reform agenda. These messages were backed up with constructive and practical support for Indonesia, in particular through a range of high-priority economic reform activities.

At the regional level, the aid program continued to play an important role in supporting Australia's practical engagement with Asia. In 2000–01, Australia committed $45 million for the commencement of the five-year ASEAN Australia Development Cooperation Program and began work on an initiative to combat people-trafficking. Outside our region, the aid program provided selective assistance to vulnerable communities in South Asia, Africa and the Middle East.

Global programs

In 2000–01, Australia provided around $567 million to multilateral agencies, non-government organisations, volunteer programs, humanitarian and emergency programs, and education and information programs. Multilateral development banks play a critical role in promoting aid coordination and good governance. Australia's substantial commitments to the banks and other multilateral agencies contribute to international efforts to reduce poverty and achieve sustainable development.

The aid program encouraged international organisations in the region to be more effective. For example, we achieved agreement from donors on significant policy reforms for the Asian Development Bank. These included greater participation by civil society in the development and implementation of programs. The agency also played a lead role in the negotiations to replenish the Asian Development Fund. Australia committed $291 million to this $5.65 billion fund—making it the third largest contributor.

The Australian aid program's emergency and humanitarian operations continued to work to limit the impact of disasters on vulnerable populations. In 2000–01, Australia provided almost $104 million for emergency relief and rehabilitation, such as for earthquakes in India; floods in Cambodia, Vietnam and Laos; relief assistance for displaced people in Indonesia; and drought in Africa. We also focused on improved preparedness for emergencies and risk reduction.

Aid policy and management

Aid in the 21st Century

The nature and role of aid is changing rapidly. Donors and developing countries alike are examining new approaches to planning and implementing aid programs.

Over the past few years, an international consensus on aid effectiveness has emerged. It emphasises greater policy engagement with partner countries with the clear objective of reducing poverty. AusAID enhanced its focus on poverty reduction in 2001 by developing a Poverty Reduction Framework. The Framework incorporates new understandings of poverty as well as practical measures to enshrine poverty reduction as the central aim of Australia's aid program.

To increase aid effectiveness, AusAID is putting increased focus on strategy development, activity design and contracting methodologies. It has also strengthened its policy engagement with partner governments and other key stakeholders. The agency also took steps to improve aid coordination. For example, this year Australia and New Zealand agreed to harmonise aid arrangements in an effort to cut the administrative load of aid activities on our Pacific partners. We have begun work on this in several Pacific island countries.

Australia is working hard to address the economic, political and human tragedy of HIV/AIDS. This year the Government announced a six-year $200 million HIV/AIDS initiative, complementing existing HIV/AIDS activities. This represents a doubling of annual HIV/AIDS expenditure.

Australia's commitment to human rights is an important aspect of the development assistance program. AusAID addresses human rights issues in the context of its governance policy because effective governance is increasingly recognised as a crucial factor in the promotion of both sustainable development and human rights. We also provide targeted human rights activities. For example, in 2000–01, we completed the first stage of the Australian Human Rights Initiative in Burma.

We have paid increasing attention to information and communications technologies (ICT) in international development over the past 12 months. ICT is developing at a rapid pace and the issues for the aid program are complex. In 2000–01, AusAID began work to develop a major ICT initiative with the World Bank. This initiative has the potential to make Australia a leader in efforts to incorporate ICT into development.

AusAID manages the third largest portfolio of contracts and consultancies in the Commonwealth. In 2000–01, the agency entered into over 1 400 new contracts and agreements valued at approximately $600 million. We introduced a revised contractor performance system in 2000–01. This will enhance the quality of aid delivery by contractors. We also made significant progress in 2000–01 in improving the Australian Development Scholarships program.


The aid program is an integral part of Australia's engagement in the Asia-Pacific region. It is in Australia's national interest for the program to promote regional stability and foster economic growth. As this annual report indicates, the aid program achieved effective outcomes in 2000–01. AusAID will build on these achievements in the coming months in implementing our core mission of poverty reduction and sustainable development.

Bruce Davis
Director General

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Agency Overview

Role and Functions

AusAID administers Australia's overseas aid program. The objective of the aid program is to advance Australia's national interest by assisting developing countries to reduce poverty and achieve sustainable development.

Better Aid for a Better Future, released in November 1997, sets out the Government's strategic priorities and directions for Australia's development cooperation program. The program focuses on the Asia-Pacific region, and is an expression of Australia's strong engagement with the region and commitment to working in partnership to meet its development challenges. These challenges are considerable—the Asia-Pacific region has the world's highest concentration of people living in abject poverty, with more than 800 million people surviving on less than a dollar a day.

Papua New Guinea, Pacific island countries and the poorest regions of East Asia are the areas of highest priority. The program also responds selectively to development needs in South Asia, Africa and the Middle East.

Development in the Asia-Pacific region fosters stability and expands trade and investment opportunities for Australia. The promotion of sustainable development addresses issues of direct interest to Australia, including HIV/AIDS, illegal migration, global environment problems and narcotics. The aid program is a key component of Australia's approach in engaging with the region. Specific examples of the program's contribution include building capacity for improved economic governance and sustained growth following the Asian financial crisis, assisting in the recovery and reconstruction of East Timor and building peace and meeting humanitarian needs in Solomon Islands.

Better Aid for a Better Future also defines key principles and priority sectors that are crucial to the alleviation of poverty and achieving sustainable development. The sectors that underpin the aid program are health, education, infrastructure, rural development and governance. AusAID has developed detailed policies on these sectors, and on the key cross-cutting issues of gender and environment.

AusAID’s Core Business

AusAID serves the Government by advising on development issues and delivering Australia’s development cooperation program with excellence. AusAID will:

  • provide professional policy advice and support to the Minister and Parliamentary Secretary on development issues
  • develop and manage effective and innovative poverty reduction programs in partnership with developing countries, Australian businesses, non-government organisations and international agencies
  • be a creative, effective organisation that provides a rewarding workplace with high levels of staff commitment and satisfaction
  • be an open, accessible organisation that promotes Australia’s aid program and approach to international development issues to key stakeholders, including the Australian community.

Organisational Structure

AusAID is an administratively autonomous agency within the Foreign Affairs and Trade portfolio. The Director General reports directly to the Minister for Foreign Affairs on all aspects of aid policy and operations, and is responsible to the Secretary of the Department of Foreign Affairs and Trade (DFAT) for the administration of the agency. As Chief Executive Officer under the Financial Management Act, the Director General is responsible for the agency's financial management. The Director General is a member of the DFAT Executive.

AusAID's organisational structure is shown by Figure 1. AusAID's Executive comprises the Director General and the three Deputy Director Generals. A Deputy Director General heads each of the agency's three divisions. Corporate governance is discussed in Section 3 (see page 88).

Figure 1. AusAID Organisational Chart

Figure 1. AusAID Organisational Chart

Outcome and Output Structure

AusAID's outcome and output structure is shown in Figure 2. AusAID has a single outcome:

Australia's national interest advanced by assistance to developing countries to reduce poverty and achieve sustainable development.

AusAID's administered items contribute to this outcome, as do the two agency outputs: policy and program management.

Administered items—that is, those revenues, expenses and liabilities managed by AusAID on behalf of the Government—represent the bulk of the aid program (about 99 per cent of the total aid budget). They are allocated to activities aimed at reducing poverty and achieving sustainable development, concentrated in the following key result areas:

The policy and program management outputs represent the services purchased by the Government from the agency to achieve the outcome of its aid program.

Figure 2. AusAID Outcome and Output Structure, 2000–01

Figure 2. AusAID Outcome and Output Structure, 2000-01

Table 1. Resources summary for outcome

Budget and Additional Estimates 2000–01 $'000
Actual Expenses 2000–01 $'000
Budget Prior to Additional Estimates 2001-02 $'000
Total Administered Expenses 1 476 342 1 475 926 1 521 978
Price of Departmental outputs
Output 1.1 - Policy 10 331 10 348 10 445
Output 1.2 - Program Management 56 482 56 540 56 943
Revenue from Government Appropriations for Departmental Outputs 66 813 66 888 67 388
Revenue from Other Sources 1 154 842 1 076
Total price of Outputs 67 967 67 730 68 464
Total for Outcome 1 544 309 1 543 646 1 590 442
Staff Number (years) 557 550

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Performance Information Framework

Effectiveness - Overall Achievement of Outcome

Performance in Key Result Areas

Country and Regional Programs

Global Programs

Output 1 - Policy

Output 2 - Program Management

Financial Results

Purchaser-Provider Arrangements

Service Charter

Social Justice and Equity

Performance Information Framework

AusAID's Performance Information Framework was adopted when the Government moved to accrual-based outcomes and outputs budgeting in 1999–2000. The framework provides the basis for assessing the performance of Australia's aid program against the outcome for which funds are appropriated. AusAID continues to review and revise the details of the framework to ensure its effectiveness.

AusAID collects quantity and quality information at the activity level and aggregates it to report the achievements of programs, sectors and the agency outcome. The information AusAID aggregates includes expenditure, number of activities, significant activity outputs and overall quality assessments. The framework has the following key elements:

The 2000–01 AusAID annual report reports on the indicators defined in the agency's Portfolio Budget Statements 2000–01.

Effectiveness—Overall Achievement of Outcome

Outcome: Australia's national interest advanced by assistance to developing countries to reduce poverty and achieve sustainable development

Summary of Performance

In 2000–01, activities aimed at reducing poverty and achieving sustainable development in developing countries were concentrated in the following key result areas:

AusAID achieved its overall quality target, with more than 75 per cent of activities receiving a quality rating of satisfactory overall or higher.

The process of development is complex and multifaceted. Aid is only one of many factors in making progress. The aid program is delivered in dynamic and risky environments. How to enhance the effectiveness of aid, and measure its impact in reducing poverty and achieving sustainable development are key issues for the Australian aid program, other donors and developing countries. AusAID continuously reviews its capacity to deliver the best development outcomes, including learning the lessons of what works in development—and what does not work. While there is scope to do better, the agency is improving its ability to monitor and measure program achievements.

Australia's aid program provided a total of $908.1 million in country and regional program aid to 35 countries in the Asia-Pacific region ($857.9 million), 16 countries in Africa and the Middle East ($37.9 million) and cross-regional programs ($12.3 million).

The aid program contributed $567.4 million in development assistance through global programs, including non-government organisations, humanitarian and emergency activities, multilateral organisations, United Nations organisations, the Commonwealth and international health and environment organisations.

The Australian Centre for International Agricultural Research (ACIAR) and other government departments contributed $225.1 million in official development assistance.

Performance in Key Result Areas

This section provides a summary assessment of results in seven of AusAID's ten sectoral and cross-cutting key result areas. (Of the other three areas, 'humanitarian and emergency assistance' is dealt with on page 68, and 'build effective partnerships' and 'deliver Australia's aid program with excellence' are covered by the performance report on output 2, page 77).

Expenditure figures for each key result area are approximations (figures may not add due to rounding).

Figure 3. Total Australian aid flows by sector, 2000–01

Figure 3. Total Australian aid flows by sector, 2000-01

Improve Agriculture and Rural Development

While urbanisation is increasing in most developing countries, the majority of the world's poorest people continue to live in rural areas. The aid program focuses on three key areas to meet the needs of rural poor: increasing agricultural productivity, stimulating rural non-farm employment and managing natural resources sustainably.

In 2000–01, the aid program provided an estimated $223.3 million for rural development, supporting 344 projects through AusAID and the Australian Centre for International Agricultural Research (ACIAR). Key outputs in 2000–01 included:

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Food security

The aid program spent about $261.3 million on the cross-cutting issue of food security in 2000–01. This included not only rural development activities but emergency food activities and expenses related to agriculture scholarships. This contribution is part of Australia's pledge to provide $1 billion for food security activities for the four-year period ending 2001–02. Key outputs in 2000–01 included:

Figure 4. Estimated direct expenditure for rural development by subsector, 2000–01

Figure 4. Estimated direct expenditure for rural development by subsector, 2000-01

Improve Access to and Quality of Education

Although education is fundamental for the achievement of sustainable development, approximately 113 million children in poor communities worldwide do not attend school, and hundreds of millions more attend for only a few years. The aid program aims to increase access to, and improve the quality and relevance of, education and training for the most vulnerable in the developing countries of the Asia-Pacific region. Basic education (particularly focusing on disadvantaged groups) and technical and vocational education are priorities. Assistance is also provided for higher education, distance education and institutional strengthening.

In 2000–01, the aid program provided support for 257 activities with a primary focus on the education sector, at an estimated cost of $272.0 million. In addition, a further $302.3 million was spent on projects in other sectors that have significant benefits for the education sector. In basic and vocational education, key outputs included:

Figure 5. Estimated direct expenditure for education by subsector, 2000–01

Figure 5. Estimated direct expenditure for education by subsector, 2000-01

In higher education, key outputs included:

Promote Effective Governance

Strong governance provides a stable platform for developing countries to build effective strategies and programs to meet the needs of their poorest citizens. Without the fundamentals of good governance, other approaches to poverty reduction may be unsustainable. Recent political unrest and economic crises in several countries in our region have highlighted the often fragile nature of democracy and economic progress. This reinforces the need for continued attention to standards of governance.

Australian aid program support for good governance targets four priority areas: improving economic and financial management, increasing public sector effectiveness, strengthening law and justice and developing civil society.

In 2000–01, the aid program undertook 598 activities with governance as the primary focus, with estimated expenses of $360.3 million. Expenditure in other sectors that had a significant benefit to governance is estimated to be a further $142.8 million. The public sector reform and civil society sub-sectors account for the largest shares of governance expenditure.

Key outputs of 181 activities aimed at strengthening public sector management for effective delivery of government services included:

In 156 activities aimed at fostering the development of civil society, key outputs included:

In 209 activities to improve economic and financial management, key outputs included:

Figure 6. Estimated direct expenditure for governance by subsector, 1996–97 to 2000–01 ($m)

Figure 6. Estimated direct expenditure for governance by subsector, 1996-97 to 2000-01 ($m)

* Other Governance includes multilateral & NGO multisector

Key outputs of 40 activities aimed at strengthening legal systems and the rule of law included:

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Improve Health

Health remains a key challenge for development. Ten million children die every year before reaching the age of five. Higher productivity and higher incomes are direct outcomes of improvements to the health of the poor. Key sub-sectors of the health program include basic health and infrastructure, health policy and management, and HIV/AIDS and other communicable diseases.

In 2000–01, health outcomes were achieved through 338 projects valued at approximately $202.3 million. A further $90.4 million was spent on projects with a health component.

In 2000–01, key outputs from the 100 basic health and infrastructure activities included:

Key outputs for the 32 health policy and management activities included:

Key outputs from the 90 HIV/AIDS activities and the 25 infectious disease control activities included:

Figure 7. Estimated direct expenditure for health by subsector, 2000–01

Figure 7. Estimated direct expenditure for health by subsector, 2000-01

Provide Essential Infrastructure

Basic infrastructure, such as water supply and sanitation, transport and energy, is fundamental to poverty reduction and sustainable development. Infrastructure needs in developing countries far exceed the resource capacity of governments. Priorities for the aid program are human resource development and capacity-building; improving access of poor people to infrastructure; and creating enabling environments for private sector involvement in the provision of infrastructure.

Direct expenditure of the estimated $223.1 million spent on infrastructure in 2000–01 involved 190 activities in more than 25 countries. Infrastructure priorities were also achieved through a further $67.8 million of expenditure in other sectors.

Key outputs in 2000–01 included:

Figure 8. Estimated direct expenditure for infrastructure by subsector, 2000–01

Figure 8. Estimated direct expenditure for infrastructure by subsector, 2000-01

Maximise Environmental Sustainability

Environmental degradation affects the poor disproportionately and represents a large cost to the economy of many developing countries. In urban areas, the health and productivity of the poor, especially women and children, are affected by pollution and unsanitary living conditions. In rural areas, destruction of natural resources threatens livelihoods and environmental degradation has a major impact on health.

The Australian aid program incorporates strategies to assess and manage the impact of aid activities on the environment and to promote environmental sustainability. The aid program also provides assistance in a range of sectors that directly address environmental issues in developing countries. In 2000–01, approximately $224 million was spent on environmental activities, including on activities directly promoting environmental sustainability, and on multilateral activities and those in the rural development and infrastructure sectors indirectly addressing environmental issues.

Key outputs in 2000–01 included:

All aid activities were assessed for significant environmental impacts. Measures and mechanisms for assessing environmental impacts are found at Appendix 10.

Promote Gender Equity

Societies that do not deal with gender issues are likely to face higher levels of poverty, slower economic growth, weaker governance and lower quality of life. Gender disparities continue in many countries where women still lack access to economic resources, education and health care, are under-represented in decision-making roles, and frequently face gender-based violence.

During 2000–01, an estimated total of $591.3 million was spent on activities in which gender was a major component or in which gender considerations informed a significant proportion of project components. Combating violence against women was a key focus for the sector.

Key outputs in 2000–01 included:

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Country and Regional Programs

75 per cent of activities and organisations receive a quality rating of satisfactory overall or higher; significant activity outputs in key result areas. Country and regional programs achieved the designated performance target. The programs delivered outputs in key result areas as described below.

Papua New Guinea

Geographic proximity, strong historical ties and continuing economic and other links highlight the importance of Papua New Guinea's (PNG) development to Australia. In 2000–01, Australia provided $298.4 million for bilateral program activities, making PNG the largest single bilateral aid partner.

After 25 years as an independent state, PNG remains a fragmented society facing immense challenges of social and economic governance. Most of PNG's people live a subsistence lifestyle in rural areas, with high rates of illiteracy and poor health indicators. An estimated one-third of PNG's population lives in absolute poverty according to a recent household-level survey. The needs and contributions of women in particular are frequently overlooked, crime and violence are major problems, and there is a growing HIV/AIDS threat.

Country strategy objectives

In response to these needs, the program has the following objectives:

Program Achievements

This was the first year that Australia's aid to PNG was wholly delivered through jointly programmed aid activities. Since 1989, direct budget support to the PNG Government has been gradually phased out, with a corresponding increase in jointly programmed activities. The transition has helped to make Australian aid more accountable and transparent.

Figure 9. Total Australian aid to PNG 1995–2001

Figure 9. Total Australian aid to PNG 1995-2001

The new Treaty on Development Cooperation between Australia and Papua New Guinea came into effect in July 2000. The Treaty provides for performance benchmarks to measure progress in key areas of health, education and infrastructure. The Incentive Fund, an innovation established under the new Treaty, has ensured greater contestability for Australian development assistance through allowing a diverse range of PNG institutions to apply for assistance. This has included non-government organisations, private sector companies, agricultural producers, independent government authorities and education institutions.

In the first year of its operation, the Incentive Fund is supporting a number of education initiatives, including the construction of a new university library and lecture theatre; the extension of a primary school to cater for an additional 185 children up to year 8; and the development of a tertiary distance education program making effective use of information and communication technology. The Fund is supporting a program to train 220 people in community development, project management, literacy, community health and agricultural extension. Other Incentive Fund projects are the construction of a market in the township of Paiam to increase income-earning opportunities for women and the construction of a bridge over the Kulu River to increase access to health and education services.

Australia's largest HIV/AIDS project commenced. This $60 million project is working with the PNG National AIDS Council in response to PNG's HIV/AIDS epidemic. The activity has a cross-sectoral approach, which involves government departments at the national and provincial levels, the media, churches, community groups, the private sector, teachers and welfare officers. In 2000–01, the program developed a national HIV/AIDS strategy for counselling and home care with support to key community-based counselling and care programs. Provincial AIDS Committees were also established in all provinces and HIV Response Coordinators employed in 14 provinces.

Achievements against sectoral objectives

In terms of sectoral allocations for 2000–01, Australian aid to PNG focused on governance, health, education, infrastructure, and renewable resources. Support for Bougainville and efforts to promote gender equality are carried out through the delivery of activities across these key sectors.

Figure 10. PNG program sectoral breakdown, 2000–01

Figure 10. PNG program sectoral breakdown, 2000-01

Strengthening governance

Good governance is essential for sustainable development. In PNG, poor administration and problems of law and order impede the effective delivery of health, education and infrastructure services to the people and act as obstacles to investment and growth. Australian aid is working to improve the effectiveness and accountability of government services. Australia also recognises the importance of building private sector and civil society capacities to deliver services and promote the rule of law. Key outputs for 2000–01 included:

Improving social indicators


PNG's National Health Plan 2001–10 provides the framework for Australian support in the sector. The Plan outlines key areas for improved health outcomes, particularly in maternal and child health, as well as prevention of priority diseases, including malaria, diarrhoeal diseases, tuberculosis and HIV.

The aid program has made major progress in reforming aid delivery within a sector-wide approach that works closely with PNG programs and systems. The focus for 2000–01 has been on rural health services and national support programs, including programs to strengthen provincial and district planning and budgeting; to revitalise PNG's immunisation program; to support improved delivery of pharmaceuticals and essential medical equipment to all rural health centres; and to address HIV/AIDS. Key outputs for 2000–01 included:

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PNG education is characterised by low overall rates of schooling, poor retention and progression rates, and gender inequity at the secondary level and beyond. About 60 per cent of women and 50 per cent of men are illiterate and less than three-quarters of children have access to basic education.

The Government of PNG has embarked on a process of education reform that seeks to achieve universal basic education, and a literate and productive population. Australian assistance to the sector is focused on improving the quality and relevance of teaching at elementary, primary and secondary levels; developing curricula and supplying education resource materials; constructing or rehabilitating physical infrastructure; and institutional strengthening and capacity-building at the national and provincial levels. Key outputs for 2000–01 included:

Children being taught in the local vernacular
Children being taught in the local vernacular in their elementary school classroom, Morobe Province, Papua New Guinea.
Photo by Bernice Lee.


The goal of sustainable and equitable development in PNG confronts marked gender disparities in education, health, employment and formal decision-making. The aid program aims to ensure that gender issues are being addressed at the sector and project level. Key outputs for 2000–01 included:

Promoting sustainable economic growth


Adequate infrastructure is vital for the achievement of almost all of the Government of PNG's development objectives, and has been shown to deliver major benefits in economic growth and poverty alleviation. Despite this, PNG's stock of infrastructure has deteriorated progressively over the past decade, the result of inadequate funding for maintenance and weaknesses in the capacities of responsible agencies to deliver effective maintenance programs. About one-third of the national road network is assessed to be in a bad to very bad condition.

The infrastructure sector strategy for Australia's assistance to PNG focuses on national assets in the land transport and aviation subsectors, with smaller programs in maritime transport and water supply and sanitation. The strategy emphasises maintenance of existing assets, rather than construction of new ones. This approach is consistent with PNG's Medium Term Development Strategy, and the National Transport Development Plan. Australia's support in the aviation sector also concentrates on safety issues. Key outputs for 2000–01 included:

Renewable resources

Australia's assistance to the renewable resources sectors in PNG aims to reduce poverty and promote rural development by improving the long-term management of PNG's natural resources. The program is focused on agriculture, forestry and conservation to improve its development impact. Key outputs for 2000–01 included:

Consolidating the peace process in Bougainville

Australia provided significant support for the peace talks between the PNG Government and Bougainvillean leaders that have resulted in an agreed basis for autonomy for the province. In February 2001, Australia hosted 190 Government of PNG and Bougainvillean delegates in Townsville, Queensland, to discuss autonomy and weapons disposal issues. This was a key step on the road to the final agreement.

Australia's assistance continues to target key sectors at the community level and at government service delivery level. Key outputs in 2000–01 included:


Political instability remained an issue in the Pacific during 2000–01, confirming the importance of providing support to strengthen governance in the region. Economic growth continued to be low in a number of countries, with Fiji and Solomon Islands experiencing sharp negative growth. However, many countries undertook economic, structural and administrative reforms, leading to better fiscal management and governance mechanisms.

The remoteness and small populations of many islands, limited access to markets and vulnerability to external economic shocks, as well as natural disasters, continued to pose challenges to development in the Pacific.

Regional strategy

In 2000–01, Australia's strategy for assistance to the Pacific retained a strong commitment to efficient management of human, financial and natural resources, and a continuing focus on improving governance and accountability at national and provincial levels. Above all, it aimed at increasing self-reliance, and improving the environment and opportunities for those most in need.

To achieve these ends, program assistance focused on economic reform and governance, health, education and training, and sustainable resource management. In 2000–01, Australia's country and regional programmed aid flows to the Pacific totalled $126.8 million.

Economic reform and governance

Australian aid is highly supportive of Pacific economic reform and improved governance. More than 25 per cent of AusAID funding is now expended in this broad area. Projects aim to strengthen economic policies and financial management; support sustainable resource management and exploitation; support political institutions and civil society, including parliaments, electoral offices, the media and community-based organisations; and act as a catalyst in progressing good governance in the Pacific through provision of early, flexible and responsive assistance to reforming governments.

To give further impetus to economic reform efforts, the Policy and Management Reform fund (PMR) supplements bilateral funding for countries that demonstrate a commitment to economic and political reform. In 2000–01, PMR funding accounted for 12 per cent of Australia's aid to the region. Key outputs in 2000–01 included:

Another example of Australian support to governance in the Pacific region is the establishment of the Pacific Judicial Education Program, which has enhanced the proficiency of judicial service personnel in the region through the provision of seven training seminars, two regional workshops and a workshop to train judicial mentors.

Civil society

Australia recognises that a well-informed and strong civil society is necessary to improve government accountability and transparency. Consequently, Australia's support to civil society in the Pacific continues to grow. For example, a regional program for the media has provided training and workshops for 200 Pacific journalists and media professionals in key fields such as economic reporting, gender reporting and HIV/AIDS. Improved capacities arising from this activity were demonstrated at a practical media workshop run concurrently with the Forum Economic Ministers' Meeting in Cook Islands in June 2001. In Vanuatu, the State Society and Governance in Melanesia project organised a Youth and Governance conference and produced and distributed a range of publications on governance debates of significance to the region. The Pacific Outreach and Publications project mounted four seminars (in Vanuatu, Kiribati, Samoa and Tonga), produced two Pacific Economic Bulletins and established a website for policy-makers, to broaden the understanding of social and economic development issues in the region. In Solomon Islands, the Support for a Peaceful Society program has funded women's, church and community groups to hold workshops to rebuild peace following the violent unrest of the recent past.

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Education and training

Australia's assistance for education in the Pacific region in 2000–01 continued to focus on improving the quality and availability of basic education services. Support included primary and secondary teacher training, curriculum development, education planning and the provision of school buildings and material. Teacher training in relevant technical and vocational skills was provided to enhance the employment prospects of secondary school leavers. Key outputs in 2000–01 included:

At the tertiary level, Australia supported the University of the South Pacific (USP) in developing distance education and flexible learning programs to use the capacity of USPNet, a new satellite telecommunications system linking USP's 12 Regional Centres. More than 4 000 students will benefit directly from this technology. In addition, around 650 Pacific islanders received scholarships to study in Australia or at regional institutions, such as USP.

Participants in the Regional Internet and Integration of New Media Workshop tour the facilities
Participants in the Regional Internet and Integration of New Media Workshop tour the facilities of the USPnet at the University of the South Pacific. The workshop was funded by the Australian Government through the Pacific Media Initiative. Photo by Peter Davis.


Increasingly, the major health challenges facing the region are in the area of non-communicable diseases and service delivery. Primary health care and disease-prevention programs remained a priority for Australian assistance in 2000–01. At the country level, Australia supported national health reform and management, medical training and the provision of clean water and sanitation. At the regional level, a major consultative process began, seeking to define Australia's continuing role in supporting island countries in their fight against HIV/AIDS. Key outputs in 2000–01 included:

Sustainable resource management

The sustainable management of the region's natural resources and conservation of its fragile environments are of critical importance to the future welfare of all Pacific island peoples. Current threats include the loss of biodiversity, pollution and degradation of coastal environments.

Key outputs in 2000–01 included:

Pacific regional organisations

Australia's aid delivery in the Pacific is enhanced through its collaboration with an extensive framework of regional organisations. These organisations represent a key resource for the island countries, providing their members with important services including technical advice, capacity-building, research, regional representation and policy development. The organisations, which cover all major economic and social sectors, also play an important role in mobilising donor funds to address regional development issues.

The regional organisations supported in 2000–01 were: the Forum Secretariat, Forum Fisheries Agency, South Pacific Applied Geoscience Commission, Secretariat of the Pacific Community, South Pacific Regional Environment Program, University of the South Pacific and the South Pacific Board for Educational Assessment. The performance of each of the regional organisations is monitored annually under the Multilateral Assessment Framework and less frequently through in-depth reviews.

In 2000–01, Australia channelled around one-third of its regional program funding through the regional organisations in the form of programs and projects. Australia also provided strategic and corporate planning assistance to several of these organisations and initiated a program of training for their officers in project design and management. Key outputs in 2000–01 included:

Bilateral programs

The majority of Australia's aid delivery in the Pacific is funded through bilateral and multi-country programs. Direct bilateral assistance is provided to 16 Pacific countries. The overall direction of bilateral programs is derived from AusAID's Pacific Islands Development Strategy, although individual program specifics reflect regular consultative processes with Pacific island governments.


Throughout 2000–01, continued political uncertainty caused significant disruption to Fiji's social and economic progress. To give maximum incentive for an early return to a democratically based system of government, the Australian Government imposed a range of sanctions in July 2000. These sanctions, designed to have minimal impact on the poorer sections of the Fiji community, resulted in a 30 per cent reduction in the bilateral development assistance program and the termination or suspension of most non-humanitarian aid.

Bilateral aid to Fiji in 2000–01 totalled $12.9 million. Health projects and activities in support of basic education have continued, as has a major revenue project. The main objective of the program during 2000–01 was to ensure that the developmental goals of these activities remained relevant and responsive in the volatile political climate. Building the capacity of civil society organisations and legal institutions has also been emphasised. Key outputs in 2000–01 included:

Lami Convent, Suva
Angela Lee (right), a teacher who has completed the Basic Education Management and Teacher Upgrade Project (BEMTUP) with students at Lami Convent, Suva. Photo by Peter Davis.


Australia's assistance continues to support efforts to implement Vanuatu's economic and public sector reform agenda. This Comprehensive Reform Program aims to achieve equitable economic prosperity and to improve delivery of core government services. Key aims of this program are a more effective and efficient public sector, strengthened fiscal and economic management and improvements to the legislative framework and legal education.

Bilateral aid to Vanuatu in 2000–01 totalled $15.6 million. Key outputs included:

Solomon Islands

Solomon Islands suffered violent unrest from June to October 2000, leading to an economic and humanitarian crisis. On 15 October 2000, a peace agreement was signed in Townsville and an International Peace Monitoring Team mobilised under Australian Government leadership. Open tensions have since abated, but the economic base of the country remains precarious and Government capacity is severely curtailed.

Bilateral aid to Solomon Islands in 2000–01 totalled $19.6 million. Australian aid principally focused on supporting the peace process, meeting basic humanitarian and emergency needs, restoring law and order, and reconstructing and rehabilitating communities adversely affected by the conflict. Key outputs in 2000–01 included:

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Australian assistance has significantly advanced Samoa's public sector reform program by targeting reform in key government departments and promoting a whole-of-government approach to reform issues. Samoa is now seen as a regional leader in governance reform. The focus on governance and public sector reform in the Australian program is complemented by activities in the health, education and natural resource management sectors.

In 2000–01, Australia's bilateral aid program totalled $13.1 million. Key outputs included:


Tonga's key development needs include capacity-building and streamlining within the public sector, improved returns from the key revenue-earning fisheries and tourism sectors, and more effective delivery of essential services in health and environmental protection.

Australia's bilateral aid program to Tonga in 2000–01 totalled $9.9 million. Key outputs included:


Kiribati has significant development needs. It has low per capita income, extremely limited resources, limited employment opportunities, a weak private sector and limited places for students beyond primary education.

In 2000–01, Australia's bilateral aid program to Kiribati totalled $8.37 million. Australia supported efforts to improve public sector financial management. There was also a strong focus on education and training. Key outputs in 2000–01 included:

Other island nations

Australian development assistance was extended to Tuvalu, Federated States of Micronesia, Marshall Islands, Palau, Cook Islands and Niue. Some smaller programs, typically scholarships, also operate in nations such as Nauru. Assistance focused on human resource development, infrastructure development and public sector reform. Australian development assistance to these Pacific island nations in 2000–01 totalled $7.9 million. Key outputs within these programs included:

East Asia

Economic recovery in East Asian countries affected by the financial crisis continued in 2000–01, although towards the end of 2000 the pace of growth slowed. For many countries this reflected a downturn in exports in line with a more generalised global economic slowdown. Building capacity for good economic governance is central to long-term progress and stability in the region. While post-crisis reforms have improved the resilience of East Asian countries to external shocks, many regional governments still face a significant structural and policy reform agenda. Recent economic conditions have highlighted the need for regional governments to remain committed to implementing these reforms.

The post-crisis recovery in living and social standards in the region continued to lag behind economic recovery, underscoring the need for ongoing efforts to tackle poverty, protect vulnerable groups and address long-term social challenges. The development of adequate social protection mechanisms and the provision of essential social services like basic health and education persist as serious challenges for many regional governments.

In 2000–01, Australia provided $364.4 million in programmed aid to East Asia.

Regional strategy

In 2000–01, the aid program provided $28.0 million through the Asia Regional Program. This program complements bilateral assistance by addressing transboundary development challenges and strengthening regional cooperation and economic integration. In 2000–01, a new regional strategy was developed to guide the program over the next three years. Activities to mitigate the effects of the financial crisis began to move from immediate assistance to longer-term objectives, with a focus on governance and health. Achievements included a new HIV/AIDS initiative and development of the ASEAN–Australia Development Cooperation Program (AADCP).

South-East Asia regional activities

In 2000–01, the aid program worked closely with the Association of Southeast Asian Nations (ASEAN) on the development of the $45 million five-year AADCP. The program also worked closely with the Asia Pacific Economic Cooperation (APEC) group in areas such as economic governance, training on trade-related issues and social safety nets. The Mekong River Commission was a significant regional partner, participating in a number of projects aimed at capacity-building and sustainable development. The program also addressed significant transboundary issues such as trafficking in women and children and HIV/AIDS.

Key outputs of the regional program included:


Indonesia continues to face major challenges in tackling a complex reform agenda, involving structural reform of the economy and comprehensive changes in governance, including democratisation, legal and judicial reform, and decentralisation. At the same time, more than 40 million people remain in poverty. Worsening security in the regions has meant increased loss of life and destruction of property, and has continued to place pressure on the country's resources.

Bilateral aid to Indonesia in 2000–01 totalled $93.4 million. Australia's new strategy for development cooperation aims to help meet the needs of vulnerable communities and promote improved governance. Despite an uncertain and at times unstable environment in 2000–01, the aid program continued to provide substantial technical assistance to Indonesian Government bodies. Key outputs in 2000–01 included:

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East Timor

Despite a large international relief effort in East Timor since 1999, the country continues to face major development challenges as it moves towards independence. Major challenges ahead include: training of East Timorese staff at all levels to take over public administration; restoring basic services; and establishing new legal, administrative and regulatory frameworks.

Australian assistance aims to reduce poverty and build East Timorese capacity to govern a peaceful, democratic and independent East Timor. In 2000–01, it focused on supporting reconstruction and development activities, restoring basic services and building the capacity of government. Australia works closely with the East Timorese Transitional Administration and other donors, including the World Bank and the United Nations.

villager rebuilding market garden
AusAID is helping villagers rebuild their market gardens through the East Timor Community Assistance Scheme (ETCAS). Photo by David Haigh.

In 2000–01, Australia provided an estimated $40.0 million in bilateral aid to East Timor. Key outputs included:

Viet Nam

Viet Nam has made considerable progress in reducing poverty during the past decade. However, with around one-third of the population still living in poverty, the challenge remains to build on these efforts, particularly in rural areas where the extent and severity of poverty is greatest. The Vietnamese Government recently adopted an ambitious development strategy for the next decade. Australia will continue to work in partnership with Viet Nam to help achieve the strategy's goals of poverty reduction and the shift to a market economy.

In 2000–01, Australia provided approximately $59 million in bilateral development assistance to Viet Nam. The program focused on the priority areas of human resource development, economic management, and improving the livelihoods of the poor through developing activities to support rural development and income generation. Key outputs in 2000–01 included:


Although China has achieved impressive economic growth in recent decades, it still faces significant challenges in overcoming poverty. More than 200 million people live on less than US$1 per day. Poverty is geographically concentrated in the inland and western provinces, and there is growing inequality between the developed east coast and the interior of China.

Australia's bilateral aid to China in 2000–01 totalled $39.3 million. The aid program helps develop replicable models for rural development and poverty alleviation; it helps strengthen the Chinese Government administration in key areas such as social and economic planning and the transition to a market economy; and it provides expertise to deal with China's chronic environmental problems associated with water and land degradation—significant constraints to development. In Tibet, Australia is implementing development cooperation projects, with a particular focus on the health sector. Key outputs in 2000–01 included:


Mongolia continues to face challenges in dealing with poverty and unemployment, its social sectors having suffered significantly in the economic transition process.

In 2000–01, Australia's bilateral aid to Mongolia totalled $2.2 million. Activities in the health sector and poverty alleviation in the capital's poor areas have been complemented by continued institutional strengthening in the government sector. Key outputs included:


The Philippine economy achieved moderate economic growth in 2000–01. Despite this, the country continues to face significant structural challenges limiting transition to a higher economic growth path. Without this transition, the opportunities for significant poverty reduction are greatly reduced. Moreover, security issues continue to affect the development process in the southern Philippines, especially Mindanao.

In 2000–01, Australia provided $54.5 million in bilateral aid to the Philippines. The geographic focus of Australian development assistance is the southern Philippines, particularly Mindanao, where one-fifth of the nation's population and about one-third of the nation's poor live. In addition to governance, the key livelihood areas of rural income, health, education and the environment provided the focus for the program. Key outputs included:

Australian aid continued to support the Philippine Government's reform agenda by focusing on initiatives to improve the Philippine policy and regulatory framework. This included:

Women sewing
In the Philippines, Australian aid trained these women how to sew and now they pass on their skills to other women to help them earn an income. Photo by David Haigh.


Cambodia is one of the poorest countries in the world, with a per capita annual income around US$300. Cambodia's economy remains fragile, and further reforms will be required to support sustainable, broad-based development. Some 3.5 million people were affected by widespread floods in September–October 2000, with economic damage estimated at US$157 million. This resulted in Australia providing more than $2.25 million in response.

In 2000–01, Australia provided $23.8 million in bilateral development assistance to Cambodia. Australia's aid program aims to reduce poverty and support Cambodia's transition towards sustainable development. Agriculture, health, human resource development and governance are key sectors. Key outputs included:

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In 2000–01, Thailand continued on a path of modest economic growth. A new government was elected with high expectations of the business and rural communities.

In 2000–01, Australia provided $16.8 million in bilateral development assistance to Thailand. Australia's aid program to Thailand focuses on supporting the Thai Government's efforts to promote good governance at the national and local levels. Key outputs included:


Reducing poverty and improving the quality of life for the population continues to be the major challenge facing Lao PDR. Social indicators are very poor and access to basic services such as health and education is very limited. The Government of Laos has recognised the need for a program of administrative and policy reform, but requires practical support to undertake reform programs.

Bilateral aid to Laos in 2000–01 totalled $14.0 million. Poverty reduction through Australian NGOs was a major focus, as was widening the access to primary health care and education at all levels. In addition, the program includes strategic efforts to support multilateral and other donor efforts to strengthen and hasten government policy reform. Key outputs included:


Burma is an impoverished country. Lack of infrastructure and social services in areas such as health care and education is seriously weakening the population, which is reflected in poor, and in many cases deteriorating, social and economic indicators.

In 2000–01, Australia's bilateral aid to Burma totalled $1.4 million. The major focus of the program was poverty reduction through NGO projects in primary health care, HIV/AIDS and education. A significant development was the Human Rights Initiative, in which Australian human rights experts provided training on international human rights standards and practices to mid-level officials. Planning began for delivery of additional human rights activities in 2001–02. Key outputs in 2000–01 included:

South Asia

Nearly 40 per cent of the world's absolute poor live in South Asia. Some 49 per cent of people are illiterate and 60 per cent of children under five are malnourished. Australian aid focuses on geographic areas where poverty is extreme, where there are ethnic minorities, where there is limited other externally-supported development activity, and in sectors where Australia has proven expertise. Activities are chosen to complement and facilitate larger projects by other donors where feasible. Australia's aid program to South Asia aims to:

Australia's programmed aid to South Asia totalled $54.4 million in 2000–01.


Bangladesh has the world's largest concentration of poor people. While it has continued to make significant progress in reducing population growth and increasing primary school enrolment and food production, economic growth has been insufficient for any sustainable impact on the extremely poor half of its population.

Bilateral aid to Bangladesh in 2000–01 totalled $20.7 million. Australian aid meets priority development challenges, particularly food security and basic education. The program focuses on women and girls as the groups most vulnerable to poverty. Key outputs for 2000–01 included:


Despite progress in child mortality rates, literacy and access to clean water, India is home to 36 per cent of the world's poor, with 470 million people living on less than $US1 a day. Women, girls and ethnic groups are particularly disadvantaged. Escalating population is affecting the environment and the spread of HIV/AIDS, if left unchecked, could become a major threat.

Children in school
AusAID assisted the enrolment of 17 600 additional poor children in schools in India. Photo by AusAID.

Bilateral aid to India in 2000–01 totalled $15.4 million. Australia aims to improve India's capacity to deliver more effective services in the key areas of health, education, water and environmental management and to improve governance. Australian aid is focused in states which are particularly disadvantaged. Key outputs in 2000–01 included:

Sri Lanka

Conflict has significantly affected Sri Lanka's development. An estimated 600 000 civilians have been displaced and more than 60 000 people killed. The Government has been unable to maintain socioeconomic systems. Consequently, recent years have seen the erosion of Sri Lanka's once-good social indicators.

Bilateral aid to Sri Lanka in 2000–01 totalled $5.8 million. The Australian Community Resettlement Program helped 40 000 families displaced by the conflict in the north and east to resettle peacefully. An independent review found this program was successfully meeting the needs of Sri Lanka's poorest and most marginalised displaced communities. Other key outputs included:


Nepal is one of the poorest countries in the world and has the worst social indicators in the region. Increasing disparity between rural and urban areas, regions, genders and social/ethnic groups is fuelling social and political tensions. Political instability and weak governance have hampered both economic growth and the ability of the government to deliver adequate services, particularly in rural areas.

Bilateral aid to Nepal in 2000–01 totalled $5.6 million. Key outputs in 2000–01 included:


More than 30 per cent of Pakistan's population is poor. Less than half its children attend school and only 50 per cent of children between 12–23 months are immunised. Access to basic services is limited. Much remains to be done to build democratic institutions and achieve the stability necessary for private sector development and sustainable growth.

Bilateral aid to Pakistan in 2000–01 totalled $3.0 million. The Australian aid program is aimed at rural poverty and is tightly focused on basic education, health and natural resource management. Key outputs of the 2000–01 program included:

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Maldives' economic development is significantly constrained by geographic isolation and a limited resource base, including skilled personnel. The cost of providing basic services is extremely high. Environmental vulnerability is likely to have a major impact on Maldives' future.

Bilateral aid to Maldives in 2000–01 totalled $2.4 million. In 2000–01, 40 Maldivians studied in Australia under the scholarships program. A review of the program found that all students go back to make a significant contribution to Maldives' development.


Bhutan is landlocked and isolated. It has few skilled educated workers and little capacity for training. It has a high population growth rate (3 per cent), low levels of literacy, and poor health indicators. Bilateral aid to Bhutan in 2000–01 totalled $0.9 million. In 2000–01, sixteen Bhutanese students successfully completed their tertiary studies at Australian education institutions and returned home to positions in the Royal Government of Bhutan.

Africa and the Middle East

The objective of Australia's role in Africa's development is to build partnerships between Australia and selected African countries and communities that reduce poverty and achieve sustainable development. In 2000–01, the program continued to implement and consolidate the current program strategy framework (1999–2002). Australian assistance is mainly focused on South Africa and Mozambique. Targeted sectors are food security, HIV/AIDS, water supply and sanitation, education and governance.

In 2000–01, Australia's country program aid to Africa and the Middle East totalled $37.9 million. Key outputs included:

The Australian aid program has also supplied seeds, tree seedlings, improved cattle and poultry health, increasing income generation and nutritional benefit for 16 000 households in Mozambique, Tanzania, Zimbabwe and Malawi. About 60 per cent of the beneficiaries are women.

South Africa

South Africa is the major economy in the region. Whilst a relatively rich country by African standards, there are over 11 million people (28.4 per cent of the population) living in poverty.

In 2000–01, Australia's bilateral aid program in South Africa totalled $10.4 million. Through the Capacity Building Program, Australia has provided support for effective government and market-oriented reforms. This has contributed to more efficient, accountable and responsive public administration, better-regulated markets and policies and legislation supporting sound economic management. The program also takes advantage of the presence of strong and effective indigenous South African NGOs to work directly with poor communities in addressing issues of gender violence, water supply and HIV/AIDS.

Key outputs in 2000–01 included:


Despite impressive advances in democratic, economic and public sector reform, Mozambique remains one of the poorest countries in the world. The aid program is supporting the Government of Mozambique to overcome two major hurdles—its own limited capacity and widespread poverty.

In 2000–01, Australia provided $10.3 million in bilateral aid to Mozambique. Capacity-building for the public sector aims to bolster Mozambique's reform efforts and improve provincial service delivery. At the request of the Government, Australia is placing particular emphasis on English-language training for public servants. The provision of both in-country and in-Australia tertiary scholarships is integrated into the capacity-building program to increase the number of qualified Mozambicans.

Key outputs in 2000–01 included:

Middle East

The main focus of Australia's aid to the Middle East is on the Palestinian Territories and refugees in the surrounding countries. Australia also provides some assistance through the World Food Programme and NGOs to other countries in the region. In 2000–01, an estimated $2.1 million was provided to the Palestinian Territories as bilateral aid, although mulilateral contributions and emergency programming meant a total of around $9 million was directed to the Palestinian Territories and refugees.

In the political and security situation which prevailed for much of 2000–01, the focus of the aid program shifted to humanitarian and emergency assistance. The crisis has deeply affected longer-term development activities. The Agriculture Capacity Building Project was suspended for several months because of the Intifada, and the Rule of Law project faced considerable delays. Other projects delivered through NGOs have either been delayed or commuted from development to humanitarian work.

Key outputs in 2000–01 included:

Global Programs

Multilateral organisations

Multilateral organisations complement Australia's aid program by extending its reach. In 2000–01, Australia's contributions to these organisations enabled cooperation with other countries to address major global and regional issues that required a collective response.

Summary of performance

75 per cent of organisations receive a rating of satisfactory overall or higher in terms of efficiency, effectiveness and relevance to Australian Government priorities; significant activity outputs in key result areas. The multilateral organisations program achieved its performance indicator. Outputs of the program are described below.

The Multilateral Assessment Framework (MAF) is the key strategic mechanism through which AusAID monitors the relevance, efficiency and effectiveness of the multilateral agencies. The 2000–01 review of the MAF confirmed its overall appropriateness, and identified several areas for improvement. AusAID is continuing to review and refine the MAF to ensure it continues to be a robust, accurate and efficient reporting tool.

United Nations Organisations

During 2000–01, Australia provided $70.9 million in contributions to United Nations (UN) development and humanitarian organisations, including the World Food Programme (WFP), United Nations Development Program (UNDP), United Nations Children's Fund (UNICEF), United Nations Population Fund (UNFPA), the International Atomic Energy Agency (IAEA), United Nations International Drug Control Program (UNDCP), United Nations Environment Program (UNEP), and the United Nations Development Fund for Women (UNIFEM).

UN agencies were important to the aid program achieving its objectives; they worked towards sustainable development and poverty reduction and addressed more specific issues such as the protection and development of children, and the participation of women.

AusAID continues to pursue reforms to the systems, policies and governance of UN organisations, including an increased focus on accountability and performance. In 2000–01, AusAID also worked towards aligning the UN agencies more closely with Australia's strategic objectives, including an increased focus on the Asia-Pacific region.

In seeking to develop more effective partnerships with the UN agencies, AusAID achieved:

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Commonwealth Organisations

Australia provided almost $10.5 million to Commonwealth organisations during 2000–01. These funds supported activities that assisted small states with development and advocacy issues, strengthened weak governance institutions, promoted conflict resolution and the democratic process, and helped developing countries harness the benefits and manage the challenges presented by globalisation.

Working with Commonwealth countries maximises the benefits of Australian aid, as Commonwealth countries have much in common. The similarities in our legal systems, constitutional arrangements and administrative institutions facilitate and reinforce the contributions Australia makes to foster peace, security and trade cooperation. Key outputs for 2000–01 included:

World Bank

In 2000–01, Australia contributed $113.4 million to the International Development Association (IDA), the concessional lending arm of the World Bank. The Bank is the world's largest source of development assistance. Australia's membership and contributions to IDA help focus the World Bank on reducing poverty in Asia and the Pacific. In 2000–01, the World Bank:

Asian Development Bank

In 2000–01, Australia provided $A120.2 million to the Asian Development Fund, the soft loan facility of the Asian Development Bank (ADB). With annual development loans totalling $US5.7 billion, the ADB is a major source of development assistance in the Asia-Pacific region, and its lending and technical assistance programs complement Australia's bilateral aid program.

Australia derives several benefits from its membership in the Bank—the only regional development bank focused exclusively on our region. The scale of ADB loans are well suited to the size and scope of the infrastructure needs of the region. The ADB is also able, due to its neutrality, to take forward sensitive policy dialogue with member countries on issues including good governance and financial sector reform. The ADB's expertise in sector analysis and policy development, most notably its poverty reduction strategy, underpins national efforts to reduce poverty in the region. A further important feature of the ADB is the mandate contained in its Charter to give special attention to small states. This has particular relevance to the Pacific region, a key focus of Australia's aid effort.

In 2000–01, the ADB:

International Environment Programs

In 2000–01, Australia's aid program provided $11.5 million to international environment programs. These programs helped developing countries reduce poverty and achieve sustainable development by addressing climate change, conservation of biological diversity, ozone layer depletion and protection of international waters. It has been estimated that were it not for these international controls over the past decade, the world would be five times worse off in terms of crop damage, further destabilisation of the ecosystem and higher incidences of skin cancer and cataracts.

Australia continued to promote the priority of the Asia-Pacific region, encourage the direction of funds to programs that are likely to have the maximum impact, and encourage the Global Environment Facility (GEF) and the UNEP to streamline their operations to enhance environmental effectiveness.

The Australian aid program contributed $7.7 million to the GEF in 2000–01. In calendar year 2000, the GEF provided approximately 42 per cent of its program funding of US$485.8 million to help developing countries sustainably conserve biological diversity, 40 per cent to address the adverse effects of climate change, 10 per cent to protect international waters, 1.5 per cent to phase out ozone depleting substances, and 6 per cent for multi-focal area projects.

In 2000–01, Australia contributed $2.9 million to the Montreal Protocol Multilateral Fund to reduce ozone depleting substances.

International Health Programs

In 2000–01, Australia provided $11.1 million of voluntary funds to international health agencies including the World Health Organisation (WHO), the United Nations Joint Program on HIV/AIDS (UNAIDS), the International Planned Parenthood Federation, and the International Centre for Control of Iodine Deficiency Disorders.

The goal of AusAID's International Health Program is to contribute to the health needs of the poor at a global and regional level, complementing AusAID's bilateral and other regional health programs.

The major achievement in 2000–01 was the eradication of polio from the Western Pacific region. Australia and Japan were the principal donor countries to the WHO/UNICEF/Rotary immunisation campaigns that led to this important public health success.

In addition, the International Health Program:

Human Rights Fund

The protection of human rights by Australia's development partners is an important element of sustainable and equitable growth as well as broader social development. In 2000–01, Australia provided $1.3 million to the Human Rights Fund, which promotes and protects economic, social, cultural, civil and political rights. The Fund provided support for:

Members of Wan Smol Bag theatre group
Members of Wan Smol Bag theatre group in Vanuatu received Australian Government support through the Human Rights Small Grants Scheme to make three short videos on contemporary issues.
Photo by Peter Davis.

Centre for Democratic Institutions

In 2000–01, Australia provided $664 000 to the Centre for Democratic Institutions. On behalf of the Government, the Centre provides practical expert assistance to Asia-Pacific countries to support good governance and human rights. In 2000–01, the Centre supported 18 projects that trained 205 individuals from 13 countries in the region, in fields such as parliamentary and judicial processes, reducing corruption, democratic media, civil society and human rights.

A mid-term review of the Centre in November 2000 found that in its first two years, it has established strong and impressive networks with Australian experts (to deliver training and technical assistance), international donors, governments and democracy promotion institutions in the region. The review noted that in its first two years the Centre has:

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AusAID Development Research Program

The AusAID Development Research Program is the agency's centrally managed research fund. In 2000–01, over $0.8 million was used to fund targeted research to support specific sectors and country areas. For example, the program commissioned research that informed an Australia–New Zealand Government commitment to harmonise aid policies and practices in a number of Pacific island countries, leading to greater efficiencies and better aid outcomes. Other study topics included:

The program also funds targeted distribution of the Asia-Pacific Economic Literature journal to developing countries throughout the Asia-Pacific region.

International Seminar Support Scheme

The International Seminar Support Scheme provides funds for seminars that promote and support sustainable development and poverty reduction. The scheme fosters networks, and transfers skills and information among developing countries, and between Australia and developing countries. In 2000–01, the scheme provided more than $0.8 million in financial support to 251 selected participants to attend 60 development-oriented seminars in Australia and overseas.

NGOs and Volunteer Programs

In 2000–01, the aid program provided $44.1 million to support non-government organisations (NGOs) and volunteer programs. The ability of NGOs to engage civil society in developing countries at the local and grass roots level makes them an effective means of delivering Australian aid. The AusAID NGO Cooperation Program (ANCP) supports development activities of accredited Australian NGOs that directly alleviate poverty in developing countries. Volunteer programs and the Australian Youth Ambassadors for Development (AYAD) program placed Australian volunteers on development assignments in key sectors of the aid program.

Summary of performance

75 per cent of activities in the key result areas receive a quality rating of satisfactory overall or higher; significant activity outputs in key result areas. NGO and volunteer programs exceeded the performance target. Selected outputs from the NGOs and volunteers program are described below.

Accredited NGOs provide self-assessments of the performance of the Government-subsidised community development activities in their portfolios. These assessments are reviewed through activity reporting, an annual program of cluster evaluations and quality assurance group evaluation. Significant outputs of the program in 2000–01 included:

Furthermore, NGOs reported that:

Australian Volunteers
Australian Volunteers International podiatrist Chris Hagerty (left), and occupational therapist Sally Baker (right) outside the diabetic foot clinic at SamoaÕs National Hospital. Photo by Peter Davis.

The Australian aid program policy statement Volunteers and the Aid Program, released in June 2001 to coincide with the UN International Year of the Volunteer, recognises the valuable contribution volunteers have played in enhancing community participation in the aid program.

Volunteer activities in 2000–01 included:

Emergency and Humanitarian Program

The aim of Australia's Emergency and Humanitarian Program is to alleviate the suffering of refugees and victims of disasters. The program focuses on improved preparedness, risk reduction and the formulation and provision of effective responses, especially within the Asia-Pacific region. In 2000–01, Australia provided almost $104 million in humanitarian and emergency assistance to people in need through this program.

Summary of performance

75 per cent of humanitarian and emergency activities and organisations receive a quality rating of satisfactory overall or higher; significant activity outputs in key result areas. The humanitarian and emergency programexceeded the performance target. Outputs of the program are described below.

During 2000–01, Australia responded to a range of natural disasters and humanitarian crises. The program recognised that due to the greater frequency of natural, protracted and conflict-related emergencies within our region, it was essential that a comprehensive strategy be put in place to properly align the relevant humanitarian and country programs.

This was achieved with the finalisation of the Humanitarian Program Strategy 2001–2003, which reflects Australia's growing role in international efforts to alleviate humanitarian crises in our region. Thus, the core element of the strategy is regional engagement. The strategy also recognises that Australia relies heavily on international humanitarian agencies to deliver aid within and outside our region, and identifies the need for greater interaction with selected international agencies.

Key outputs in 2000–01 were delivered through contributions to:

Girl with water
Dhamadaka village, 24kms west of Bhachau, Gujurat State, India. Photo by Antony Funnell.

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Australian Development Scholarships

Australian Development Scholarships (ADS) for post-secondary study in Australia form an integral part of most of AusAID's country programs, with around 6 per cent of the overall aid budget being spent on ADS each year. Approximately 2 800 students were studying in Australia as at 30 June 2001 under the ADS scheme and an estimated 1 700 students successfully completed their scholarships and returned home during the financial year 2000–01. Fifty-six East Timorese were undertaking English-language training in Australia before taking up ADS awards, and 30 scholars nominated by the International Monetary Fund were undertaking aid program-funded awards in Australia.

Major fields of study continued to be strongly linked with development needs in partner countries. The majority of scholarships were awarded in government and civil society; business and other services; social infrastructure and services; health; education; agriculture, forestry and fishing; and industry, mining and construction.

Significant progress was made to improve the ADS scheme's impact and efficiency. In particular, following a competitive public tender, new long-term contracts were signed with 19 Australian tertiary institutions to provide academic and support services for ADS students from January 2001. The new contracts further improve impact, quality and efficiency by giving greater decision-making authority to institutions. This allows individual institutions to better tailor their services to the needs of ADS students. The competitive nature of the selection process meant that AusAID was able to obtain improved value for money for the services it obtains from technical and further education (TAFE) and tertiary institutions. AusAID has also introduced a system that enables better identification of performance management data.

The centralisation of ADS contract management, from AusAID's state offices to its central office in Canberra, led to a significant improvement in the coordination of the ADS scheme. A comprehensive set of ADS operating guidelines was prepared and distributed to institutions and overseas posts in September 2000.

An annual student survey was developed as part of the ADS performance framework. The survey, to be carried out in August–September each year, will allow ADS scholars to comment on services provided under the scheme, and the results will be discussed with individual institutions during performance monitoring meetings each November. The first survey will be undertaken in 2001.

A comprehensive ADS information kit was developed and the first edition distributed to overseas posts in May 2001 for use by the intake commencing in 2002. The kit is designed to allow short-listed applicants to make informed decisions on courses and institutions in Australia.

The two remaining tasks under the current ADS management reform program, enhancement of the ADS performance framework and development of a new ADS management information system, are expected to be completed in 2001–02.

Communications, Education and Information

In 2000–01, AusAID implemented a communications, education and information strategy that sought to improve public understanding of the aid program in rural and metropolitan Australia through positive, high-visibility media coverage. The strategy had a dual focus: the critical contribution Australia's development assistance continues to play in delivering peace and stability to our region; and the opportunities the aid program provides for Australian business.

New research shows that 85 per cent of Australians support overseas aid. AusAID seeks to deepen this support using public information strategies agreed with the Minister and Parliamentary Secretary.

Summary of performance

75 per cent of activities in key result areas receive a quality rating of satisfactory overall or higher

Significant activity outputs in key result areas

Number of teachers participating in development education

Number of curriculum documents purchasedby target group

Average monthly numbers of hits on Internet sites

Community support for development increasing

The Communications, Education and Information Program achieved its performance indicators.

Outputs included:

  • an increase of nearly 25 per cent in subscriptions to Focus magazine
  • providing 80 000 people with AusAID publications and promotional material at awareness-raising events at ten agricultural shows and three industry field days
  • an average monthly media reach of nearly 12 million people assisting in the training of 9 993 primary and secondary teachers across Australia
  • the sale of 3 500 curriculum documents
  • significant growth in visits to the Internet site with an average of 1.15 million hits per month, compared to 900 000 the previous year a survey in March 2001 indicating that 85 per cent of Australians support overseas aid, up 1 per cent on 1999-2000.

The program delivered results in five key public information areas: media, outreach, global education, Internet and publications.


AusAID helped the Minister for Foreign Affairs and the Parliamentary Secretary communicate with the public domestically and in partner countries about the aid program. In Australia, the agency distributed 62 media releases and responded to 173 media requests. In partner countries, AusAID provided over 400 media releases, presented approximately 400 speeches and received almost 300 media requests for information.

In 2000–01, AusAID's media activity focused on demining activities in Cambodia, emergency assistance to earthquake victims in India and post-conflict support for East Timor, Bougainville and Solomon Islands.


AusAID implemented an outreach program to generate awareness of the aid program through a public information program of events, displays and activities directed at our target audience in metropolitan, regional and rural Australia.

AusAID participated in ten agricultural shows, including the Sydney Royal Easter Show, distributing aid publications and showbags to over 80 000 members of the public, with an audience visibility in excess of 1.5 million. The agency was also represented in speaking engagements conducted by Outreach Coordinators at over 54 events around Australia. Roadshows were conducted in regional and rural cities covering southern Western Australia, central Queensland and rural South Australia.

As part of the International Year of Volunteers, AusAID coordinated East Timor Volunteer Recognition Ceremonies around Australia. These ceremonies acknowledged the extraordinary contribution of the more than 400 volunteers who have served in East Timor since May 1999. The Certificate of Appreciation Program recognised the work of 891 volunteers who had served in a development capacity overseas during 2000. AusAID helped 136 Australian Members of Parliament distribute certificates to volunteers living in their electorates as part of this annual Certificate of Appreciation Program.

Global Education

The agency assisted with the training of 9 993 primary and secondary teachers in development education through professional development consultants across Australia. New curriculum materials were developed for teaching about health and development, and a video about refugees for distribution across Australia was completed. More than 3 500 curriculum documents were sold. By June 2001, the Global Education component of AusAID's Internet site was receiving 154 500 hits per month. A new Global Education online newsletter was established.


The AusAID Internet site continued to attract an increasing number of visitors, with an average of 1.15 million hits per month, a 28 per cent increase on last year's result.

Strengthening its role as an easy-access repository of agency publications, the design and content structure of the Internet site was refined to ensure its compliance with all Commonwealth standards governing electronic service delivery. Many new information services were added to the site, including an online version of the complete NGO Package of Information, a new Recruitment Exercise Advice system, and information on new business opportunities with AusAID. The Internet site also responded to widespread public interest in the Government's responses to the HIPC Debt Relief initiative, the global HIV/AIDS epidemic, the Gujarat earthquake, the ongoing situation in East Timor and the Youth Ambassadors for Development program.

AusAID responded to nearly 3 000 public requests for information through the website's email address. Further information on the Internet site is provided in Appendix 4 on page 163.


AusAID publications continue to deliver authoritative and relevant information on the aid program. AusAID produced more than 30 country strategy and policy framework documents in 2000–01, including the agency's Poverty Reduction Framework and the Humanitarian Program Strategy 2001–2003. AusAID's quarterly publication, Focus, highlighted a series of key development issues for Australia, including gender and peace-building, education, HIV/AIDS and Papua New Guinea. Subscription to Focus increased by 25 per cent. Other publications included one-stop fact sheets, aid program achievement highlight sheets and various brochures.

All publications were made available on the website. AusAID responded to 3 187 public requests for publications.

Senator Patterson, with Cambodia Mine Action Centre staff
Parliamentary Secretary to the Minister for Foreign Affairs, Senator Patterson, with Cambodia Mine Action Centre staff at a demining site in Battambang Province, Cambodia.
Photo by Lynne Barrow.

Output 1—Policy

The provision of professional policy advice and support to the Minister and Parliamentary Secretary on development issues is a key function of AusAID.

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Summary of performance

Ministerial/Parliamentary Secretary satisfaction Broad satisfaction
No. of submissions, briefs, questions on notice, possible parliamentary questions, submissions to parliamentary committees, correspondence, press releases, speeches, correspondence AusAID provided 280 submissions, 116briefs and speeches, responses to 18parliamentary questions on notice,submissions to 7 parliamentary committees. AusAID prepared 62 media releases in Australia and over 400 media releases in partner countries. 1 088 items of ministerial correspondence were received and responded to with more than 90 per cent completed within the required deadline.

Ministerial/Parliamentary Secretary satisfaction

The Minister met regularly with the Director General and AusAID Executive, providing opportunities for the Minister to express views on the agency's performance. Mr Downer also made comments on written advice provided by AusAID throughout the year. Overall, the Minister expressed strong satisfaction with the policy advice provided by AusAID. In particular, he acknowledged AusAID's continuing efforts to develop high-quality development policy for the Asia-Pacific region.

The Parliamentary Secretary, Senator the Hon Kay Patterson, also commented very positively on the quality and quantity of advice and material provided to her by AusAID staff throughout the year.

Key policy outcomes achieved included:

Continued upgrading of AusAID's information technology systems helped improve the timeliness and quality of the agency's provision of ministerial services. It also improved communication and access to information between AusAID and ministerial offices.

Non-government organisations led a number of letter-writing campaigns during the year. These campaigns focused largely on debt relief for heavily indebted countries, Australia's response to the problem of HIV/AIDS, microfinance initiatives in development, and the overall level of funding for overseas aid.

More than 84 staff received general training in the provision of ministerial and parliamentary services, which focused on the quality, timeliness and integrity of those services. Thirty agency employees attended specific training to improve skills in drafting ministerial submissions and correspondence, in preparing possible parliamentary questions, and in handling requests for information under the Freedom of Information Act.

AusAID provided responses to 18 parliamentary questions on notice. All of those that required tabling by the agency were handled within appropriate timeframes.

Output 2—Program Management

Improving the quality of Australia's aid program is a continuing high priority for AusAID. In 2000–01, the agency worked to strengthen understanding of issues affecting aid quality and the application of quality standards to program development and management.

Summary of performance

All major programs carried out in partnership. All major programs were carried out in partnership with key stakeholders, including partner governments, other donors and the Australian community.
Tools and process implemented to ensure management of a high-quality program that reflects Government priorities AusAID has developed and is implementinga range of tools and processes to ensuremanagement of a high-quality program consistent with Government priorities.
Feedback on quality of tender information, decreasing number of late gazettals, numberof contracts terminated or subject to litigation or serious disputation, and improved contractor performance The introduction of new tenderdocumentation resulted in an increase inrequests for clarification. Such feedbackwas incorporated into the documentationas appropriate.

The number of late gazettals was reduced significantly due to increased awareness measures and improved monitoring.

The level of litigation and serious contract disputes remained at a low level: three contracts were terminated in 2000–01.

Number of programs, number of activities, number of new contracts signed and ongoing contracts managed Over 1 400 new contracts were entered into with a total value of approximately $600 million.

Partnerships for development

Building and maintaining effective partnerships with developing countries, international organisations and the community is a key result area through which AusAID can plan, prioritise and measure performance of programs.

Partner governments

Working within agreed frameworks and alongside partner governments is a focus of AusAID planning and operations. Staff posted overseas and close and continuous liaisons with partner governments ensure consistency in priorities as well as with local laws and culture. Outcomes in 2000–01 included:

Partnerships with other donors

AusAID seeks to maximise donor coordination and harmonise aid strategies and aid flows through partnerships with other donors. These partnerships minimise duplication of programs and costs. In 2000–01, AusAID strengthened these relationships through:

Partnership with the Australian community

AusAID delivers the Australian overseas aid program in partnership with Australian non-government organisations (NGOs), the commercial sector and the Australian public. Working with the national community ensures the overseas aid program is a consolidated Australian effort that is widely supported and recognised as a valuable contribution to other countries and to Australia. In 2000–01, AusAID's achievements included:

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Improving program management

Quality Assurance Group

The Quality Assurance Group (QAG) diversified its activities during the year to build on the base established in 1999–2000. In 2000–01, the QAG focused on improving the quality of the aid program through widespread dissemination of lessons learned. This was achieved through seminars and workshops for AusAID staff (in Canberra and overseas) and for external stakeholders, including contractors, project teams, NGOs and staff of partner governments. Other dissemination activities included briefing of design and review teams and training of AusAID staff in activity design and monitoring. The work of the QAG has had a substantial impact on AusAID staff awareness of quality issues. An important outcome has been the strengthening of processes concerned with activity design and appraisal.

In conjunction with representatives of NGOs, the QAG developed a quality framework for assessing NGO projects. The exercise provided a methodology for performance assessment that can be applied to NGO projects. The framework will be used to assess a sample of NGO projects in 2001–02 to provide information on the quality of NGO projects and to document key lessons for improving performance.

Evaluating aid effectiveness

In 2000–01, the agency completed approximately 30 evaluation and review studies. The majority of these were in the governance, health, agriculture and rural development sectors. The findings of these evaluations contributed to forward program development and to strengthening project design and management—key elements of quality assurance.

Five evaluations were published in AusAID's Quality Assurance Series in 2000–01. The agency also undertook new evaluations of projects, policy implementation and a regional organisation. These included evaluations of HIV/AIDS projects in Thailand, land administration projects, AusAID's gender and development policy and the Secretariat of the Pacific Community. Seminars have been held within AusAID and overseas to report on and discuss the findings of these evaluations.

Learning lessons and improving practice

AusGUIDE is AusAID's basic reference source for activity management. The QAG continued to fine-tune its content for improved activity management. In addition, the QAG completed an internal review of the Project Completion Report guidelines and the framework for monitoring and performance reporting in country strategies, and suggested significant changes to the agency's approach to information management. Substantial additions were made to AusGUIDE, providing further guidance, including on poverty reduction and human rights. The review of information management will form the basis of future improvements in dissemination of the lessons learned from AusAID's experience.

Performance information

The data collected by AusAID's Activity Monitoring Brief (AMB) form the basis for performance information reporting. The 2000–01 review of the AMB was the most comprehensive in its six-year history and identified a number of substantive changes to enhance the value of this tool. As a result of the changes, the AMB format for 2001–02 will provide more statistically accurate and reliable reports of AusAID's overall performance, and result in substantial improvements to AusAID's management of program activities.

Late in 2000–01, the agency began a comprehensive review aimed at replacing AusAID's existing computerised Activity Management System with a new information management system. The new system will align computer processes more closely with work processes and improve the functionality available to activity managers. The new system is not expected to be fully implemented until late 2002.

Contract services

In 2000–01, AusAID entered into over 1 400 new contracts and agreements valued at approximately $600 million. During the year AusAID managed more than 1 800 commercial contracts with a total contract value of approximately $2.5 billion. The number of new contracts awarded was significantly higher than the previous year. This reflects a substantial number of new major projects under preparation and coming on stream. In addition, AusAID entered into around 150 new period contracts or period offers in 2000–01.

Capabilities and processes

Over 130 AusAID staff attended training modules in contract management and related skills during the year. In addition, 40 senior Program Support Unit Staff from overseas posts received training in basic principles of contractor selection and contract management.

The appointment of a commercial contracts advisor has proved effective in strengthening the quality of contract advice to AusAID contract management staff and in contributing to contract policy issues.

The revised contractor performance system began in 2000–01. Initial indications suggest that the system is leading to improvements in contractor performance. The revised system will become fully operational in 2001–02 when comprehensive contractor performance assessments for the major contractors AusAID deals with will be introduced into the selection process for the award of new contracts. In this way, the capacity to win future work will more directly take into account the quality of previous work performed under AusAID contracts. AusAID considers this system will further enhance the quality of aid delivery by contractors, and overall development outcomes more generally.

AusAID began work on the possible application of alternative contracting models, such as partnering and alliance contracting, to aid activities.

Period offers

Period offers are agreements with contractors to provide short-term specialist services on an 'as required' basis. AusAID tendered out period offers in various sectors, including economics, education, environment and natural resources and water, with around 150 contracts awarded. These contracts provide AusAID with access to a wide range of specialist expertise for activities such as project preparation, design, monitoring and technical advice. The AusAID intranet site has been re-configured to provide staff with rapid access to information on expertise available through period offers.


The level of contractual disputes remained at low levels during the year.

Contractor relationships and feedback

AusAID maintained its dialogue with contractors individually and collectively through the Private Sector Contractors Group. The Consultnet email bulletin system also allows AusAID to inform a wide range of contractors of policies and procedures and affords an opportunity for feedback on issues such as tender documentation and initiatives for encouraging firms to bid for AusAID work. The suggestions made by consultants and specialists in the field have generally been accepted.

Business website

The AusAID business website was regularly updated during the year to provide details of tender opportunities. A number of new features were incorporated into the site to improve access by business to opportunities available through the aid program, including Capacity Building Programs and the Commodity Assistance Program, for which AusAID has appointed managing contractors. The website contains a snapshot of contracts in excess of $100 000 in value that were operative during the financial year 2000–01. AusAID will update the snapshot every six months.

Statistical services

The agency substantially improved the reporting and reliability of its internal statistical services in 2000–01. The 'Data Mart', a new central data repository of statistics on all official aid flows, is the most important development. The Data Mart will be operational in early 2001–02 and will be accessible to agency staff and the public through the Internet. It is a user-friendly system that will facilitate access to a wide range of statistical data on Australia's aid program, including tables and charts, according to user-defined parameters.

An immediate effect of the Data Mart is that it allows faster compilation of annual statistical reporting. In 2000–01, AusAID's regular statistical publications for the Australian public were produced earlier than in previous years and this achievement will be further improved with the full implementation of the Data Mart.

In the most recent survey of the OECD's Development Assistance Committee Members' Reporting Performance, Australia achieved a ranking of second out of all 23 member countries. The ranking encompasses timeliness, completeness and reliability of the data provided, and reflects the improvements in AusAID's statistics systems.

Financial Results

AusAID's financial results in both the departmental and administered areas were in line with budgets and estimates as set out in Section 3, 'Budgeted Financial Statements', of the Portfolio Budget Statements (PBS) 2001–2002. Information on actual outcomes against original appropriations made in the 2000–01 PBS can be found in Note 26 'Reporting of Outcomes' in the Financial Statements in this report. The 2000–01 AusAID financial statements were unqualified by the auditors, the Australian National Audit Office, whose audit confirmed that the financial statements are fairly stated and presented.

Administered financial statements

The administered financial statements show the agency's performance in delivering aid. The Schedule of Administered Revenues and Expenses shows that expenses were very close to appropriated revenue, demonstrating AusAID's capacity to achieve the Government's outcome for the aid program. This can be seen in Note 24 C 'Administered Appropriations' of the financial statements. AusAID achieved 99.9 per cent expenditure of total administered expenses available.

The statement of administered cash flows shows the actual flow of funds under the aid program for the year as distinct from expenses. The main difference between expenses and cash flows results from the recording of multiyear commitments to multilateral development institutions as expenses in the year the agreement is entered into.

Departmental financial statements

The departmental financial statements show the agency's performance in delivering its outputs. Again, the agency came in close to its budgeted targets. AusAID has increased its cash holdings over the year largely reflecting the cash funding of depreciation creating a reserve for future capital replacement programs.

Overall the agency has performed according to expectations, plans and targets.

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Purchaser–Provider Arrangements

In 2000–01, AusAID purchased administrative services for its overseas posts from the Department of Foreign Affairs and Trade. The arrangements are on a fee-for-service basis and include personnel, office supplies, property, financial, information technology and communications services for Australian based and local staff at overseas AusAID posts. AusAID provided payroll services to the Australian Centre for International Agricultural Research.

By purchasing and providing services from within the department portfolio, AusAID maximised efficiency in departmental outcomes.

Service Charter

While the bulk of AusAID's work is involved in planning and managing projects in developing countries, the agency has significant interaction with Australian consultants, businesses and non-government organisations, and provides information on the aid program to the Australian public. The AusAID Corporate Plan 2001–2003 embodies the intent of the service charter initiative. It includes a statement of the agency's commitment to:

Copies of the Corporate Plan are available from Canberra Mailing Centre (ph [02] 6269 1209). AusAID has a wide range of publications and two websites, and that are designed to keep the Australian public informed about the aid program. AusAID also uses a complaint mechanism, the Purchasing Advisory and Complaints Service, to help with the timely resolution of complaints.

Social Justice and Equity

Workplace diversity

AusAID's Workplace Diversity Program (2001–04) offers a practical approach to removing barriers to employment equity. The diversity of AusAID's staff is one of the great strengths of the organisation. AusAID's Workplace Diversity Program recognises the benefits of diversity and seeks to ensure that differences are respected.

AusAID's Certified Agreement 2000–03 provides the overarching policy for the management of the agency's terms and conditions of employment and builds on the strength of the first Agreement. A major theme of the Agreement is the extension of flexible workplace arrangements that allow staff to meet personal responsibilities and interests, while also meeting the operational needs of AusAID.

AusAID employs 30 ongoing part-time employees, 25 (83 per cent) of whom are female. Twenty-two ongoing part-time employees (73 per cent) are within the APS5–EL2 range.

AusAID continues its commitment to employment of Indigenous Australians. In 2000–01, three new scholarships were offered to assist Aboriginal and Torres Strait Islander people in their final year of tertiary study.

Workplace harassment in any form is not tolerated within AusAID. The agency is committed to positive work practices and the elimination of harassment. AusAID seeks to achieve this by:

Data relating to AusAID's workplace diversity program can be found in Appendix 2, on pages 157–158.

Section 3

Management and Accountability

Corporate Governance

External Scrutiny

Management of Human Resources

Purchasing and Assets

Consultants and Competitive Tendering and Contracting

Corporate Governance

Corporate Plan

During the year, AusAID released the Corporate Plan 2001–2003. This document links the agency's priorities to the Government's policy objectives, as defined in Better Aid for a Better Future. The plan surveys AusAID's core business, operating environment and the critical role played by staff in achieving high quality results. It defines the key result areas that are the basis for planning, setting priorities and measuring the performance of AusAID's programs. The plan also outlines the agency's commitment to quality services to ensure accountability to the Minister, Parliamentary Secretary and Government, the Australian public, developing countries and aid delivery partners in Australia.


Within the AusAID Executive, the Deputy Directors General advise the Director General on strategic planning and management issues. The Executive as a whole focuses on the relationship with the Minister and the Parliamentary Secretary. The members of AusAID's Executive are:

Corporate management arrangements

In 2000–01, AusAID corporate committees oversaw issues relating to program quality and program strategies. The committees' roles and priorities have been kept under review, to ensure they are meeting their objectives and adding value. Corporate reform has also been a focus for the agency; further information on this can be found in the section on organisational change below.

Program Quality Committee

The Program Quality Committee continued to work on strengthening aid quality in AusAID programs. In particular, the committee:

The committee considered a number of other substantial papers, evaluations and reviews. Major issues included evaluating the impact and quality of Australian aid program-funded non-government organisations projects overseas, and how contracting issues were affecting aid quality. The committee continued to focus on ensuring the feedback of such assessments into the design of new activities.

Program Strategies Committee

The Program Strategies Committee oversees the preparation of strategies to guide the development and implementation of major bilateral, regional and global programs of development cooperation. In 2000–01, the Program Strategies Committee updated the guidelines on the formulation of program strategies, in line with the agency's new poverty reduction framework, and consistent with the directions and priorities of the Australian aid program. In response to staff feedback, the committee also overhauled the internal strategy review process to improve its efficiency and value for program managers. The committee reviewed nine existing program strategies and recommended three new strategies during 2000–01 for Ministerial endorsement. These new strategies, and the outcomes of the review process, reflect an increasing emphasis by the agency on a more strategic approach to aid delivery, including greater whole-of-government perspectives and enhanced coordination with other bilateral donors and multilateral organisations to maximise the impact of Australia's assistance. Future priorities for the committee include helping program areas to enhance the level and quality of their analysis of partner countries and poverty profiles and, related to this, to strengthen strategy monitoring and evaluation frameworks.

Organisational change

In 2000–01, AusAID implemented a range of corporate change initiatives to ensure the agency continues to be a relevant and effective development agency. A strategic planning initiative began to identify longer-term operational changes that will help AusAID position itself in the face of evolving demands. A review of work practices identified options for improving business systems, processes and practices. A corporate reform unit was established to facilitate a range of work practice reforms across the agency. AusAID also established a strategic human resources unit to develop a strategic and integrated approach to human resource planning and management.

These initiatives reflect a corporate commitment to continuous improvement, and recognition that AusAID must position itself to deal with fundamental changes in its operating environment. Such changes include increased complexity in the nature of the aid business, instability and conflict in our region and a greater requirement for whole-of-government responses on development issues. Progress on this work will continue in 2001–02.

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Aid Advisory Council

The Aid Advisory Council provides the Minister for Foreign Affairs with independent expert advice on the planning and delivery of Australia's aid program. The council helps ensure the aid program reflects the values of the Australian community and is an important means of debating new ideas and approaches to aid management and development.

Members of the council are distinguished Australians from academia, the private sector, religious organisations, NGOs and community groups. The Minister chairs the council, and the Parliamentary Secretary is the deputy chair. The council met three times in 2000–01. At these meetings the council discussed issues including the aid program's future agenda; microfinance and related quality issues; HIV/AIDS; and the aid program and the environment.

The membership of the Aid Advisory Council is outlined in Appendix 8 on pages 172–173.

Internal audit and risk management

AusAID's internal audit function contributes to corporate governance and risk assurance through reviewing functional systems and control structures and providing advice on financial management issues. Professional accounting firms are contracted to undertake most of the audits. During 2000–01, AusAID completed 15 major internal audits covering a range of subjects, including NGOs, development assistance contractors, overseas posts and key aspects of the agency's management systems in Canberra.

The NGOs reviewed included Rotary Australia World Community Service, Opportunity International Australia and Save the Children Fund Australia. The major contractors reviewed were Aus Health International Pty Limited, Austraining International Pty Ltd, IDP Education Australia Limited, Royal Australasian College of Surgeons, Royal Australasian College of Physicians and Maunsell McIntyre Pty Ltd.

AusAID also reviewed its overall risk management framework. Recommendations for an improved risk management plan are being considered.

AusAID's internal audit program has resulted in improvements to contract management processes and risk management procedures, and has strengthened management information systems, financial management practices and internal controls. For example, audits in the past financial year have led to stronger financial management practices in Australia and at overseas posts.

The Australian National Audit Office (ANAO) provides the external audit function. During the year the ANAO tabled one report on Payment of Accounts (see section on ANAO below for further information). AusAID was one of eight agencies included in this audit. The ANAO also began audits on contract management and security clearances and vetting in AusAID.

Ethics and values

The AusAID Corporate Plan 2001–2003 states that AusAID strives for excellence in carrying out its core business and that our people are critical to achieving high quality results. A statement of work value and practices, included in the Plan, is linked to the Australian Public Service (APS) Values and Code of Conduct.

AusAID's People Management Strategy supports:

AusAID's core work values and practices include:

AusAID's Certified Agreement 2000–2003 ensures that salary and conditions of service for staff are consistent with the APS Act and values. This has been done through a process of consultation with staff representatives and direct management contact with employees.

AusAID is aware of the need to maintain high ethical standards in all areas of its employment. These high values are reflected in staff circulars on a wide range of issues such as conflict of interest, workplace diversity, performance planning, occupational health and safety, and postings, placements and rotations. The attention of all staff is brought to these publications via the agency intranet site and a weekly information bulletin.

Mechanisms are in place in AusAID to allow staff to request reviews of administrative decisions. These include the appointment of an Administrative Inquiry Officer to investigate complaints that may fall outside established channels or procedures for resolution.

A continuing challenge is to keep abreast of emerging issues and developments. AusAID receives and reviews all updates to the legislation on a regular basis through a subscription service.

Senior Executive remuneration

Senior Executive Service (SES) employees' remuneration is determined through Australian Workplace Agreements (AWAs). Pay increases are at the same percentage rate as those available in the AusAID Certified Agreement 2000–2003, which covers non-SES employees. To obtain an increase in salary, SES employees have to achieve a 'Fully Effective' rating under the SES Performance, Planning and Review Scheme. SES employees who achieve a rating of 'Superior' or 'Outstanding' are paid an annual performance pay bonus.

Statistics on the AWA pay scale bands can be found in Appendix 2, page 155.

External Scrutiny

Australian National Audit Office activity

During the year, the Australian National Audit Office (ANAO) tabled one report relevant to AusAID's management of the aid program.

The ANAO Audit Report No. 52, 2000–01: Payment of Accounts (June 2001) found that good administrative controls are in place within the agency to ensure proper management and authorisation of payment for goods and services provided by suppliers. It also concluded that while a formal risk assessment strategy is in place at the organisational level, AusAID's risk management of the payment of accounts at the process level requires additional consideration. Twenty-one recommendations were made and AusAID is already implementing a number of the recommendations in the report.

The ANAO conducted a Security Clearances and Vetting Audit in AusAID between November 2000 and June 2001. The final report for this audit is pending and is expected to be available in the second half of 2001.

In June 2001, the ANAO commenced an audit into AusAID's contract management. It is expected that a report of the audit will be available in the first half of 2002.


One complaint, regarding a contractual matter, was under investigation by the Ombudsman in 2000–01.

Parliamentary committees

During the review period, AusAID appeared before, or made submissions to, the following parliamentary committee inquiries:

Joint Standing Committee on Foreign Affairs, Defence and Trade

Senate Foreign Affairs, Defence and Trade Legislation Committee

Management of Human Resources

During 2000–01, AusAID continued to build on the initiatives of the agency's People Management Strategy. Key achievements in 2000–01 included:

Results of a staff attitude survey in mid-2001 on a range of people management issues will contribute to an assessment of the strategy in 2001–02.

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Performance planning and review

The Performance Planning and Review (PPR) process has been successful in providing a framework for work planning and performance review. It provides the link between individual effort, agency priorities and broader planning processes. It also ensures that supervisors and staff members provide one another with regular structured and unstructured feedback. In its third year, PPR is now an integral component of people management and performance improvement in AusAID. The process has shown itself to be robust enough to accommodate changes in agency priorities. In 2000–01, the PPR documentation was amended to ensure that effective work practices were promoted and assessed as part of overall staff performance.

Certified Agreement

AusAID's Certified Agreement 2000–2003 provides the policy for the management of AusAID's terms and conditions of employment and builds on the strength of the first agreement. As at 30 June 2001, 534 AusAID staff were employed under the Certified Agreement. All entitlements contained in the Certified Agreement are normal conditions of employment accessible to all relevant staff, and there are no additional non-salary benefits applicable. Statistics on pay scales under the Certified Agreement can be found in Appendix 2 on page 155.

The Certified Agreement has two key themes. The first is a commitment to continuous improvement in work practices to achieve greater efficiency and effectiveness. The second is the extension of flexible workplace arrangements that allow staff to meet personal responsibilities and interests, while also meeting the operational needs of AusAID.

The agreement was developed after careful consideration and followed extensive discussion between AusAID management and the staff representatives.

Some of the features of the agreement include:

n remuneration—the remuneration strategy provides for an annual productivity increase for all staff and a payment based on performance, in recognition of productivity gains to be achieved during the life of the agreement. A 2 per cent increase was instituted on 20 August 2000, with further 4 per cent increases in August 2001 and August 2002. Access to an additional 2 per cent performance payment for most staff will be available as part of an annual performance assessment

Performance pay

In 2000–01, performance pay bonuses to SES employees totalled $61 541. (These figures are not disaggregated further, in line with requirements regarding the protection of individual privacy.)

In addition, AusAID has in place a performance assessment and payment system, which provides a pay advancement of 2 per cent for effective performance. This pay increase is not a bonus, as the pay increase becomes the new base salary for the employee.

Staffing and turnover

Actual staff numbers at 30 June 2001 were 549 (561 at the end of the previous year)—278 women and 271 men. During the year, AusAID had 67 new ongoing employees while 79 ongoing employees departed the organisation. Exit interviews, which enable AusAID to ascertain reasons for people leaving, are offered to all departees. Breakdowns of staff levels by position, gender and location can be found in Appendix 2 on page 152–54.

Training and staff development

A range of learning and development activities provided staff with the knowledge and skills to deliver a high-quality aid program and advise the Minister on development issues. In 2000–01, particular emphasis was placed on:

AusAID's average investment in formal training totalled $1 909 per staff member in 2000–01 (see table 9 on page 155). This includes formal training activities across a range of key capability requirements, such as program/project management, manager development, systems training, language training and financial training. The agency supported staff both in Australia and overseas in a range of other learning activities aimed at enhancing performance. These included:

Details of AusAID training expenditure are shown in tables 9, 10 and 11 on pages 155–156.

AusAID uses a competitive tendering process to engage human resources development specialists to design and deliver learning activities tailored to agency priorities. Each course is evaluated to determine the extent to which specific learning outcomes have been achieved. In 2000–01, AusAID achieved participant satisfaction rates in excess of 90 per cent, consistently meeting training quality targets.

Occupational health and safety

The following information is provided in accordance with Section 74 of the Occupational Health and Safety (Commonwealth Employment) Act 1991.

AusAID's OH&S policy

AusAID continued its commitment to provide a healthy and safe working environment for all employees. AusAID's Occupational Health and Safety (OH&S) Agreement sets out the responsibilities of all parties and establishes the structure and procedures within which all parties may be involved in protecting employees from exposure to hazards in the course of their duties.

During this review period, staff representatives nominated and selected two new Health and Safety Representatives for the OH&S Committee, through which management, staff and union representatives discuss OH&S issues. The list of First Aid Officers was revised to include a larger pool of Relief First Aid Officers available in a medical emergency.

Measures to ensure the health, safety and welfare at work of employees and contractors

Over 70 employees had their individual workstations ergonomically assessed, resulting in the purchase of a number of aids, appliances and furniture. The purchase of equipment is a valuable early intervention strategy to prevent injury and to help AusAID staff operate efficiently.

A staff survey was undertaken to improve and increase awareness of the Employee Assistance Program, which is available to all AusAID staff and their families. Results from the survey were used to ensure the program meets staff requirements.

In October 2000, as part of AusAID's health and lifestyle initiatives, all staff were given the opportunity to undergo health assessments. A total of 100 people (54 males and 46 females) participated. The workplace health assessments act as a catalyst in motivating people to develop responsibility for their own health by developing strategies and goals for lifestyle change. The OH&S program of activities was developed around the findings of the assessments. The range of OH&S material available to employees was increased.

Reporting requirements under the Act

There was one accident that required a Section 68 notice to Comcare. No notices were issued under Section 29, Section 46 or Section 47. No directions were given to the Department of Foreign Affairs and Trade under Section 45. There were no investigations conducted.

Commonwealth Disability Strategy

AusAID is developing its Disability Plan under the Commonwealth's Disability Strategy Framework. To be implemented during 2001–02, the Plan will focus on ensuring that all forms of discrimination in the workplace are eliminated. This will involve examining AusAID's current practices and procedures for staff selection, management and access to training and development opportunities. The Disability Plan will harness the work already under way under AusAID's Workplace Diversity program.

Purchasing and Assets

In 2000–01, AusAID's procurement practices complied with the requirements of the Commonwealth Procurement Guidelines issued by the Minister for Finance. Policies in AusAID's Financial Management Manual ensured that all purchases were in accordance with the core principles of the guidelines. AusAID awarded procurement contracts in line with competitive tendering processes where practices were fair, ethical and represented value for money to the Commonwealth. Procurement opportunities were advertised in the gazette and through AusAID's Consultnet. In special circumstances where procurement of goods and services could not be strictly in accordance with these processes, the purchasing officer was required to provide written documentation to the delegate for approval, prior to purchase.

AusAID's assets include information technology, furniture and equipment. These assets were held at AusAID central office, in the States and at overseas posts. All asset purchases, transfers and disposals throughout 2000–01 were recorded in AusAID's Asset Management System. Annual stocktakes were conducted at each location to reconcile assets held on the Asset Management System. The accounting treatment of assets was in accordance with Australian Accounting Standards.

More than 70 per cent of all AusAID assets are purchased from Australian and New Zealand companies.

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Consultants and Competitive Tendering and Contracting

AusAID is major Commonwealth purchaser of services. Contractors are used to design and deliver bilateral and regional activities funded by the aid program. AusAID's tendering and contracting procedures are undertaken in accordance with the Commonwealth Procurement Guidelines to ensure transparency, effective competition, accountability and value for money. The introduction of contractor performance information in the selection process is seen by AusAID as an important measure to enhance the quality of aid delivery by contractors and overall development outcomes.

Most AusAID contracts are awarded following a competitive selection process. AusAID's procedures for engagement of consultancy services—being one type of contract for service—are described in Appendix 5 on page 166. In addition, Appendix 5 provides a list of consultancy contracts entered into by the agency during the year.

A full list of contracts valued at over $2 000 awarded by the agency (encompassing consultancy contracts, and other contracts for service such as food aid contracts, student contracts and service contracts) is published each year in Business Participation in Australia's Aid Program. This publication can be obtained from AusAID or viewed on the AusAID Internet homepage at

In the coming year AusAID will develop an integrated Human Resource Services package for market testing. This package should include payroll, recruitment, training and development functions.

Section 4

Financial Statements

Independent Audit Report

Statement by the Chief Executive

Statement of Financial Performance

Statement of Financial Position

Statement of Cash Flows

Schedule of Commitments

Schedule of Contingencies

Schedule of Administered Revenues and Expenses

Schedule of Administered Assets and Liabilities

Administered Cash Flows

Schedule of Administered Commitments

Schedule of Administered Contingencies


Note 1: Objective of the Australian Agency for International Development

Note 2: Summary of Significant Accounting Policies

Note 3: Revenues from Ordinary Activities

Note 4: Expenses from Ordinary Activities

Note 5: Departmental Financial Assets

Note 6: Departmental Non-Financial Assets

Note 7: Employee Provisions

Note 8: Payables - Suppliers

Note 9: Departmental Equity

Note 10: Departmental Cash Flow Reconciliation

Note 11: Executive Remuneration

Note 12: Auditor's Remuneration

Note 13: Average Staffing Levels

Note 14: Act of Grace Payments, Waivers and Write-offs

Note 15: Departmental Financial Instruments

Note 16: Administered Revenues

Note 17: Administered Expenses

Note 18: Administered Financial Assets

Note 19: Administered Non-Financial Assets

Note 20: Administered Liabilities

Note 21: Administered Equity

Note 22: Administered Cash Flow Reconciliation

Note 23: Administered Financial Instruments

Note 24: Appropriations

Note 25: Special Public Money

Note 26: Reporting of Outcomes

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Section 5


1. Ministerial Responsibilities

2. Staffing Overview

3. Freedom of Information

4. Information Available on the Internet

5. Consultancy Services

6. Contributions

7. Advertising and Market Research

8. Aid Advisory Council Members

9. Overseas Accreditation

10. Ecologically Sustainable Development and Environmental Performance

1. Ministerial Responsibilities

Minister for Foreign Affairs, the Hon. Alexander Downer, MP

the Hon. Alexander Downer, MPMr Downer has overall responsibility for the portfolio, including the department's administration and management, and all non-trade international political, multilateral and legal issues (including the treaty-making process), consular and passport functions, and development assistance matters. In addition, he is responsible for all human rights, arms control and disarmament issues, peacekeeping, and the non-trade related aspects of the UN system. Mr Downer shares responsibility for international security issues with the Minister for Defence. International environment issues, while primarily the responsibility of the Minister for Foreign Affairs, often require close consultation and occasionally joint decision by both portfolio ministers. Mr Downer has primary carriage of non-trade related public affairs activities and questions of protocol. He also has responsibility for the administration and management of AusAID, the Australian Secret Intelligence Service, the Australian Safeguards and Non-Proliferation Office, the Australian Centre for International Agricultural Research, and the Australia–Japan Foundation.

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Minister for Trade, the Hon. Mark Vaile, MP

the Hon. Mark Vaile, MPMr Vaile is responsible for all trade matters—bilateral, regional and multilateral—and has responsibility for Austrade, the Export Market Development Grants Scheme and the Export Finance and Insurance Corporation (EFIC). Regional trade interests include APEC and the ASEAN Free Trade Area–Closer Economic Relations (AFTA–CER). Multilateral interests include the WTO and OECD. Mr Vaile consults sectoral ministers, State and Territory Governments and industry to ensure that the Government's international trade efforts are effective and aimed at improving Australia's export and investment performance. As part of his travel overseas to promote and advance Australian trade and commercial interests, Mr Vaile often leads industry missions.


Parliamentary Secretary to the Minister for Foreign Affairs, Senator the Hon. Kay Patterson

the Hon. Kay PattersonSenator Patterson is responsible for the day-to-day management of issues related to the aid program and provides assistance to Mr Downer in carrying out his responsibility for aid policy. Senator Patterson is actively involved in encouraging an understanding of Australia's official development cooperation program among the wider community. She liaises closely with the non-government organisation (NGO) community, business groups and other key stakeholders in relation to overseas aid. Senator Patterson is the Government's Special Representative on Demining, which involves representing Australia at relevant conferences. Senator Patterson is also strongly engaged in promoting recognition of the efforts of Australian volunteers in developing countries.


Further information about the ministers and the Parliamentary Secretary is available from the Internet website

2. Staffing Overview

Table 2. Employees by classification, location and gender as at 30 June 2001

Australia Overseas Australia Overseas Total staff
GAPS 8 0 5 0 13
APS1 3 0 1 0 4
APS2 6 0 5 0 11
APS3 21 0 11 0 32
APS4 17 0 6 0 23
APS5 41 2 29 0 72
APS6 81 13 66 6 166
EL1 52 11 79 17 159
EL2 13 6 28 6 53
SES 3 1 12 0 16
Total 245 33 242 29 549

Table 3. Ongoing and non-ongoing employees, full-time and part-time

All under the Public Service Act 1999

Full-time Part-time Sub-total Full-time Part-time Sub-total Total
Male 264 5 269 2 0 2 271
Female 247 25 272 4 2 6 278
Total 511 30 541 6 2 8 549

Table 4. Senior Executive Service gains and losses during 2000–01

Category Number of staff
Commencements 1
Separations 3

Table 5. Senior Executive Service as at 30 June 2001

Australia Overseas Australia Overseas Total staff
SES Band 1 2 1 9 0 12
SES Band 2 1 0 2 0 3
SES Band 3 0 0 1 0 1
Total 3 1 12 0 16

Notes: These figures do not include SES staff currently inoperative, and are based on actual occupancy of positions at 30 June 2001.

There were no inter-agency SES moves to or from AusAID in 2000–01.

Table 6. AusAID employees by location and gender as at 30 June 2001

Male Female Total
Australia 242 245 487
Apia 1 0 1
Bangkok 2 0 2
Beijing 0 3 3
Colombo 1 0 1
Dhaka 0 1 1
Dili 1 2 3
Geneva 1 0 1
Hanoi 0 4 4
Ho Chi Minh City 1 0 1
Honiara 1 1 2
Jakarta 2 5 7
Manila 2 1 3
New Delhi 2 0 2
New York 0 1 1
Nuku’alofa 0 1 1
Paris 1 0 1
Phnom Penh 1 1 2
Port Moresby 8 9 17
Port Vila 1 0 1
Pretoria 0 3 3
Suva 2 1 3
Tarawa 1 0 1
Vientiane 1 0 1
Sub-total 29 33 62
Total 271 278 549

Table 7. AusAID Certified Agreement salary ranges as at 30 June 2001

Staff level Salary band
APS 1 $25 920 - $28 639
APS 2 $29 139 - $32 519
APS 3 & GAPS $33 112 - $36 049
APS 4 $37 136 - $40 420
APS 5 $41 489 - $44 028
APS 6 $44 496 - $51 514
EL 1 $58 104 - $61 660
EL 2 $70 247 - $74 547

Note: AusAID had one non-SES employee on an AWA at 30 June 2001. The salary has not been provided, as it would breach the privacy of the individual concerned.

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Table 8. AusAID SES employee salary ranges as at 30 June 2001

Band Salary range No. of persons
SES Band 1 $90 000 - $100 000 10
SES Band 2 - 3 $110 000 - $150 000 4

Note: All SES are on AWAs

Note: Only includes substantive SES employees

Table 9. Expenditure on formal training activities

Total expenditure including salary $1 048 285 Average expenditure including  salary per person $1 909
Total expenditure excluding salary $621 102 Average expenditure excluding  salary per person $1 131
Total formal training days 2 452 Average formal training days  per person 4.47

Note: The average figures above are based on a total of 549 staff in the agency.

Table 10. Expenditure on additional training and development activities

No. of participants Cost
Study Support Scheme 74 $79 992
Language training at posts No. of participants Cost
12 $20 887
Work unit planning sessions No. of sessions Cost
31 $68 815
Staff training conducted overseas * No. of posts Total cost
Pacific 8
Asia 3
Total cost $41 000

* Overseas staff training includes both Program Support Unit and Australia-based staff.

Table 11. Breakdown of the five priority training activities

Category Contract project/program training Manager development Systems training Language training** Financial training
Total training expenditure including salary $329 753 $178 859 $120 577 $81 599 $27 529
Total training expenditure excluding salary $196 890 $136 476 $66 693 $61 577 $17 534
Total training days 738 190 315 231 57
Total number of attendees 548 131 522 182 79

** Refers to language training activities undertaken in Australia.

Table 12. Workplace diversity: representation of groups within levels

Level Total staff Female Culturally and linguistically diverse background* Aboriginal and Torres Strait Islander* People with disabilities*
No. % No. % No. % No. %
APS 1 4 3 75 2 50 0 0 2 50
APS 2 11 6 55 3 27 0 0 0 0
GAPS 13 8 62 2 15 2 15 0 0
APS 3 32 21 66 8 25 1 3 3 9
APS 4 23 17 74 4 17 0 0 2 9
APS 5 72 43 60 11 15 2 3 5 7
APS 6 166 94 57 32 19 1 1 6 4
EL 1 159 63 40 24 15 1 1 4 3
EL 2 53 19 36 8 15 0 0 3 6
SES 16 4 25 0 0 0 0 1 7
TOTAL 549 278 51 94 17 7 1 26 5

* Note: Identifies people who have volunteered information.

Table 13. Workplace diversity: engagement by level

Total engagements Female Culturally and linguistically diverse backgrounds Aboriginal and Torres Strait Islanders People with disabilities
No % No % No % No %
APS 1 0 0 0 0 0 0 0 0 0
APS 2 1 1 100 1 100 0 0 0 0
GAPS 13 8 62 2 15 2 15 0 0
APS 3 9 7 78 4 44 0 0 1 11
APS 4 2 1 50 0 0 0 0 0 0
APS 5 8 6 75 1 13 0 0 0 0
APS 6 13 7 54 1 8 0 0 0 0
EL 1 3 3 100 0 0 0 0 0 0
EL 2 0 0 0 0 0 0 0 0 0
SES 0 0 0 0 0 0 0 0 0
Total 49 33 67 9 18 2 4 1 2

3. Freedom of Information

Freedom of Information (FOI) matters are managed centrally within the agency by the Ministerial and Parliamentary Services Unit. All FOI inquiries should therefore be addressed to:

Freedom of Information Coordinator
Ministerial and Parliamentary Services Unit
GPO Box 887
Canberra ACT 2601
Tel: (02) 6206 4000 Fax: (02) 6206 4613


AusAID exercises the following decision-making powers and administrative functions:

Public, community, academic and business participation/consultation

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AusAID consults and seeks the participation of a wide range of people through various forums and activities. These include:

AusAID documents

AusAID produces a wide range of documents concerning the administration of the aid program, including:

Much of this information is also available on Internet sites at and that provide information on the Australian aid program and development issues.

AusAID publications

AusAID produces a range of publications aimed at increasing community awareness and understanding of the aid program.

Key publications include:

AusAID publications are available on the AusAID website at or from:

Canberra Mailing
Tel: (02) 6269 1230
Fax: (02) 6269 1229
Mailing address: PO Box 650, Fyshwick ACT 2609Y

4. Information Available on the Internet

AusAID's Internet site provides a comprehensive information service on the Australian Government's overseas aid program. Major corporate publications published on the site include the AusAID Annual Report, Corporate Plan, the annual aid program budget statement, AusAID's quarterly magazine Focus, and a variety of subject specific publications on the delivery of the aid program.

The Internet site also provides details on country program activities, details on Australia's response to humanitarian crises and significant online information resources, including the NGO Package of Information and AusGuide—a guide to project preparation and implementation.

Services to the Australian business community include information on current tenders and other business opportunities with AusAID, news of forthcoming Access AusAID seminars, advice on how to win contracts under the aid program, details of draft project designs and a consultants register that enables consultants to submit their resumes and contact details online.

In addition, the site publishes Ministerial media releases, speeches and statements, details on the Youth Ambassadors for Development program and Scholarships for Development program, curriculum materials on global issues for Australian primary and secondary teachers, and current recruitment opportunities within AusAID.

Internet and disability access

The AusAID Internet site conforms to all NOIE (ex-Government Online) targets and World Wide Consortium (WC3) Web Content Accessibility Guidelines. The site provides access to an online referral service for people with visual disabilities and a direct telephone helpdesk hotline to help disabled users access all information published on the Internet site.

Table 14. Website information

Subject Website
AusAID Home Page
Hot topics
Media releases
Country information
Working for AusAID
Youth Ambassadors
Global education

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5. Consultancy Services

Table 15. Consultancies and contracts for services managed by AusAID

Consultancy contracts Services contracts
Value ($m) Number Value ($m) Number
Services 2.5 42 423.0 686
Students * - 22
Food aid 50.7 26
Period offers 22.3 441
Other ** 109.7 229
Total 2.5 42 605.7 1404

* Student contracts do not have a set financial limitation

** Includes agreements with NGOs and other government and international agencies

Types of contracts

Consultancy contracts are those contracts where an independent consultant is engaged to provide advice to AusAID to inform decision-making. Details of such contracts are provided in Table 16.

Contracts for services are the main contract type employed by AusAID. Such contracts are used where a contractor is engaged to deliver a service defined by AusAID. These would include contracts for the design, implementation and monitoring of aid activities; the procurement of goods; period offers; construction; grants to non-government organizations. AusAID publishes details of these contracts annually in Business Participation: Australia's Aid Program. This publication is available from AusAID by calling (02) 6206 4960, or via AusAID's website at:

Food aid contracts are used for the provision of food commodities as part of Australia's food aid commitments for development and humanitarian relief purposes.

Contracts are held with 44 Australian tertiary institutions for around 2 800 students from over 48 countries to study in Australia under the aid program.

Period offers are standing offers with contractors for the provision of short-term technical expertise on an 'as required' basis. Period offers are awarded through a competitive tendering process and normally are valid for up to four years.

AusAID contracts are normally awarded following a competitive selection process. For further information see AusAID's website, contact the Contract Services Group on (02) 2606 4945, fax (02) 6206 4877, or email

Selection and engagement of contractors and consultants

AusAID's procurement is undertaken in accordance with Commonwealth Procurement Guidelines. The vast majority of tenders for project implementation are advertised publicly. Tenders that are not advertised publicly (for reasons of urgency, for example) are arranged in a cost-effective manner that ensures value for money.

Tenderers must meet eligibility criteria established to promote the Australian identity of the aid program. These require firms bidding for services contracts to be Australian or New Zealand and to use mostly Australian or New Zealand personnel (although exemption may be given in unusual circumstances).

The tender conditions, tender requirements, assessment procedures and selection criteria and associated weightings are clearly stated in the Request for Tender documentation. Tenders are assessed on the basis of:

Technical assessments may also consider other factors such as the past performance of bidders on AusAID activities. This information may be introduced into technical assessments where the bidder has seen performance reports and has been afforded the opportunity to comment and AusAID considers it relevant.

A contract is negotiated with the preferred tenderer, selected on the basis of a total score that combines a technical score (against weighted selection criteria) and a price score, following like-for-like price assessment of the financial proposal. All tenderers are afforded the opportunity to be debriefed on the comparative strengths and weaknesses of their bids.

AusAID's in-house Australian Government Solicitor and, where appropriate, external legal advisors help ensure clear, enforceable contracts. Reports of contractor performance are maintained to keep track of the quality of service being provided.

Table 16. List of consultancies let during 2000–01

Consultant Activity Financial Limitation ($)
Australian Corporate Information Solutions Web Application Development & Support Services $120,000
Business Catalyst International Pty Ltd Development of Initial IT Application Architecture $30,000
Business Catalyst International Pty Ltd IT Applications Development Environment - Review - Business Catalyst International $30 000
Canberra Economic Consultants Pty Ltd Economics for Non-Economists Training $30 000
Carlton Consulting Group, The Provision of Services for the AusAID Leadership/Management Program for Directors $55 000
CIT Solutions Pty Ltd Financial Management for Non-Accountants $20 000
Consulting Insights Pty Ltd Provision of Human Resource Survey Design, Processing and Analysis Services $10 000
DMA Australia Pty Ltd IT Client Services Management $151 000
DMA Australia Pty Ltd Provide a Senior Lotus Notes Administrator $300 000
Edge Integration Pty Ltd Provide IT Support Services $36 500
EDS (Australia) Pty Ltd Database and UNIX Support Services $44 000
utive Development Pty Ltd Middle Management Development Program $54 000
Frontier IT Recruitment and Consulting Pty Ltd Business Systems Analysis for SMS (Graham Bushell) $40 000
Griffiths and Young Design Pty Ltd AusAID Calendar 2001 - Design $10 000
Jacmik Pty Ltd Provide Documentation for AusAID’s IT Systems and Procedures $142 000
Jeremy Cox Consulting Provision of Information Technology Infrastructure Support $57 000
JG Stonewell Pty Ltd The Provision of Services to the AusAID People Management Strategy Implementation Group and Related $50 000
KPMG Management Consulting AusAID Strategic HR Unit $141 000
Morison Consulting Pty Ltd Provision of Consultancy Services relating to financial management issues $135 000
PDM Project Design & Management Provision of PASU Monitoring and Evaluation Training $100 000
PDM Project Design & Management Provision of Achieving Quality Designs Workshops $35 000
PricewaterhouseCoopers Financial and Change Management Consultancy Services $15 000
Public Service and Merit Protection Provision of Media Awareness Commission Training $18 000
Roger Fry & Company Pty Ltd Specialist Presentation and Oral Briefing Skills Training $18 000
Saville and Holdsworth Pty Ltd 360 Degree Feedback Tool - Senior Executive Leadership Capability Framework $15 000
Simbient People Network Communications and Support Services $143 715
Slaidburn Pty Ltd Communication Skills Training $24 000
Spherion Technology Solutions P/Ltd Provide Lotus Notes Development Support $126 285
Thor Solutions Pty Provision of Client Services $39 550
University of Newcastle Research Association Australian Arsenic Mitigation Program Technical Reviewer $75 000
Van Meegan and Associates Pty Ltd Provision of Facilitation Services in Connection with Organisation Development Activities in AusAID $20 000
Wizard Computer Training Provision of Information Technology Training $70 000
Wizard Personnel and Office Services Ltd To provide a Technical Support Manager $338 840

Note: This list only includes contracts with value over $10 000 as per the Department of Prime Minister & Cabinet Requirements for Annual Reports (June 2001).

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6. Contributions

Table 17. Contributions made to international organisations

Organisation Total ($)
United Nations
World Food Programme 26 600 000
UN High Commissioner for Refugees 14 300 000
UN Development Program 7 000 000
World Health Organisation 6 930 000
UN Children’s Fund 4 800 000
UN Relief and Works Agency 3 800 000
UN Population Fund 2 200 000
Joint UN Program on HIV/AIDS 2 000 000
International Atomic Energy Agency 1 540 000
UN Drug Control Program 800 000
UN Environment Program 600 000
UN Development Fund for Women 370 000
Sub-total 70 940 000
Commonwealth Fund for Technical Cooperation 7 941 429
Trade and Investment Access Facility 500 000
Commonwealth Foundation 642 294
Commonwealth Youth Programme 529 000
Commonwealth of Learning 453 000
Caribbean Community Sports Development -
Commonwealth Joint Office for Small States 270 233
Commonwealth Scholarship and Fellowship Plan 122 372
Commonwealth Partnership for Technology Management -
Commonwealth Media Development Fund 51 350
Sub-total 10 509 678
Organisation Total ($)
International Environment Programs
Global Environment Facility 7 727 200
Montreal Protocol Multilateral Fund 2 900 000
International Tropical Timber Organisation 240 000
Sub-total 10 867 200
Other International Organisations
International Planned Parenthood Federation 1 570 000
International Committee of the Red Cross 2 000 000
International Centre for Control of Iodine Deficiency Disorders 470 000
Sub-total 4 040 000
Total 96 356 878

7. Advertising and Market Research

Table 18. Payments as specified under section 311A of the Commonwealth Electoral Act 1918

Agencies/organisations Description ($) Amount (excluding GST)
Advertising agencies
Advertising Investment Services Newspaper advertisement for media services period contractors 2 828.46
Starcom Worldwide (Australia) Pty Ltd Tender Advertising 308 110
Sub-total 310 938.46
Market research organisations
Newspoll Public attitude study - overseas aid study 24 645.45
Sub-total 24 645.45
Media advertising and polling organisations
Direct mail organisations
Canberra Mailing Mailing of all AusAID publications 110 199.31
Sub-total 110 199.31
Total 445 783.22

8. Aid Advisory Council Members

The Hon Alexander Downer MP
Minister for Foreign Affairs

Deputy Chair
Senator The Hon Kay Patterson
Parliamentary Secretary to the Minister for Foreign Affairs

Mr Lynn Arnold
Chief Executive Officer, World Vision Australia

The Hon Jim Carlton

Ms Margaret Conley
Chief Executive Officer, AESOP Business Volunteers Limited

Professor Ron Duncan
utive Director, National Centre for Development Studies, Australian National University

The Most Reverend Ian George AM
Archbishop of Adelaide, The Anglican Church of Australia, Diocese of Adelaide

Ms Jill Lester
Head of Group Corporate Relations, Commonwealth Bank of Australia

Dr Ian Lin
Managing Director, The Quo Vadis Group

Professor PJ (Peter) Lloyd Ritchie
Professor of Economics, The Centre for Financial Studies, University of Melbourne

Ms Gaye Phillips
Chief Executive, Australian Committee for UNICEF Ltd

Professor Richard Robison
Professor of Asian and International Studies, Asia Research Centre, Murdoch University

Mr Ian Tuck
Managing Director, ACIL Australia Pty Ltd

Professor Cliff Walsh
South Australian Centre for Economic Studies

Ex-officio members
Dr Ashton Calvert
Secretary, Department of Foreign Affairs & Trade

Mr Bruce Davis
Director-General, Australian Agency for International Development

Mr Graham Tupper
utive Director, Australian Council for Overseas Aid

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9. Overseas Accreditation

AusAID employees at posts are maintaining important relationships with recipient governments, international donors, multilateral organisations and development banks. The following is a list of senior AusAID representatives at posts as at 30 June 2001.

Table 19. AusAID representation at posts as at 30 June 2001

Country, international organisation or regional body Post Responsible Type of post AusAID representation Head of post (as at 30 June 2001)
Bangladesh Dhaka High Commission First Secretary
Ms Vilaisan CAMPBELL
Mr Robert FLYNN
Cambodia Phnom Penh Embassy First Secretary
Mr Blair EXELL
Ms. Louise HAND
China, People’s Republic of Beijing Embassy Counsellor
East Timor Dili Mission Counsellor Counsellor
Ms Margaret THOMAS
European Office of the United Nations Geneva UN Permanent Mission Counsellor
Dr Kerry KUTCH
Mr Leslie LUCK
Fiji Suva High Commission Counsellor
Ms Susan BOYD
India New Delhi High Commission First Secretary
Mr Robert LAURIE, AM
Indonesia Jakarta Embassy Counsellor
Kiribati Tarawa High Commission First Secretary
Mr Nigel EWELS
Mr Colin HILL
Laos Vientiane Embassy First Secretary
Mr Michael HUNT
Organisation for Economic Cooperation and Development Paris OECD Delegation Counsellor
Mr Anthony HINTON
Papua New Guinea Port Moresby High Commission Minister-Counsellor
Mrs Margaret REGNAULT
Mr Nicholas WARNER
Philippines Manila Embassy Counsellor
Mr Peter SMITH
Samoa Apia High Commission First Secretary
Solomon Islands Honiara High Commission First Secretary
Dr Martin SHARP
South Africa Pretoria High Commission Counsellor
Sri Lanka Colombo High Commission Second Secretary
Mr Peter ROWE
Thailand Bangkok Embassy First Secretary
Mr Stephen WALKER
Mr Miles KUPA
Tonga Nuku ‘alofa High Commission First Secretary
United Nations New York UN
Permanent Mission
Mrs Jacqueline DE LACY
Vanuatu Port Vila High Commission First Secretary
Mr Perry HEAD
Vietnam Hanoi Embassy Counsellor
Dr Sun-Hee LEE
Mr Michael MANN
Southern Provinces Ho Chi Minh Consulate - General First Secretary

In 2000–01, the total departmental expenses of AusAID's overseas posts was approximately $10.7million.

10. Ecologically Sustainable Development and Environmental Performance

The objective of Australia's aid program is to advance Australia's national interest by assisting developing countries to reduce poverty and achieve sustainable development. This is achieved through the integration of economic, environmental and social considerations in the delivery of all activities. The environment is a cross-cutting issue that must be considered in the design and implementation of all AusAID projects.

AusAID's activities are implemented following strict environmental assessment guidelines. In 2000–01, AusAID completed the following actions to ensure the implementation of ecologically sustainable development and environmental matters under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act):

Further information about the environment can be found in the section 2, 'Performance in key result areas—Maximise environmental sustainability', pp. 26.

Section 6


Glossary of Terms

Glossary of acronyms and Abbreviations


Glossary of Terms

Accrual Budget A comprehensive budget incorporating assets, liabilities, expenses and revenues, as well as cash receipts and expenditures. Thus an accrual budget is an extension of the cash budget, focusing on all the resource implications of the strategic and operational plan.

Administered Items Expenses, revenues, assets or liabilities managed by agencies on behalf of the Commonwealth. Agencies do not control administered items. Administered expenses include grants, subsidies and benefits. In many cases, administered expenses fund the delivery of third party outputs.

Effectiveness The extent to which actual outcomes are achieved, in terms of planned outcomes, via relevant outputs or administered expenses. Effectiveness should be distinguished from efficiency, which concerns the adequacy of administration.

Outcomes Results, impacts or consequences of actions by the Commonwealth on the Australian community. Planned outcomes are the results or impacts that the Government wishes to achieve. Actual outcomes are the results or impacts actually achieved.

Outputs The goods or services produced by agencies on behalf of the Government for external organisations or individuals. Outputs include goods and services produced for other areas of government external to the agency.

Performance Information Evidence about performance that is collected and used systematically. Evidence may relate to appropriateness, effectiveness and efficiency. It may be about outcomes, factors that affect outcomes and what can be done to improve them.

Performance information may be qualitative (descriptive) or quantitative (numerical). It should be verifiable. Its usefulness is enhanced by applying standards and other types of comparison, which allow judgements to be made about the extent to which desired results are achieved.

Quality Relates to the characteristics by which customers or stakeholders judge an organisation, product or service. Assessment of quality involves use of information gathered from interested parties to identify differences between users' expectations and experiences.

Quantity Size, volume or number of outputs.

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Glossary of Acronyms

and Abbreviations

AADCP ASEAN–Australia Development Cooperation Program

AAECP ASEAN-Australia Economic Cooperation Program

ACFOA Australian Council for Overseas Aid

ACIAR Australian Centre for International Agricultural Research

ADB Asian Development Bank

ADS Australian Development Scholarships

AFTA-CER ASEAN Free Trade Agreement—Australia–New Zealand Closer Economic Relations Trade Agreement

AMB Activity Monitoring Brief

ANAO Australian National Audit Office

ANCP AusAID NGO Cooperation Program

APEC Asia Pacific Economic Cooperation

APS Australian Public Service

ARIC Asia Recovery Information Centre

ASEAN Association of Southeast Asian Nations

AWA Australian Workplace Place Agreement

AYAD Australian Youth Ambassadors for Development

CAS Common Administrative Services agreement

DAC Development Assistance Committee of the OECD

DFAT Department of Foreign Affairs and Trade

DPRK Democratic People's Republic of Korea

EEO Equal Employment Opportunity

EU European Union

GEF Global Environment Facility

HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome

HIPC Heavily Indebted Poor Countries

IDA International Development Association

IMF International Monetary Fund

MAF Multilateral Assessment Framework

NGO Non-Government Organisation

OECD Organisation for Economic Cooperation and Development

PMR Policy and Management Reform

PNG Papua New Guinea

SES Senior Executive Service

UN United Nations

UNAIDS United Nations Joint Program on HIV/AIDS

UNDCP United Nations International Drug Control Program

UNDP United Nations Development Program

UNEP United National Environment Program

UNFPA United Nations Population Fund

UNICEF United Nations Children's Fund

UNIFEM United Nations Development Fund for Women

UNTAET United Nations Transitional Administration in East Timor

USP University of the South Pacific

WFP World Food Program

WHO World Health Organisation

WTO World Trade Organization

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