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The deadbeat of international aid

The greatest and most immediate threats to Australia's security and prosperity arise from three sources: the degradation of the global environment, the plunging back into poverty of hundreds of millions of our neighbours due to the financial crisis, and new and mutating infectious diseases, including swine influenza, HIV/AIDS, and tuberculosis.

At the height of the last economic boom most rich countries declined to redistribute wealth at even the minimum levels needed to improve, or just stabilise, the basic health structures of the developing world. Shamefully, they refused the trade deals necessary to let the poorer countries kick-start their own economies, and thereby strengthen their social infrastructure.

They doled out the crumbs from their table, like aristocrats before the French Revolution, never countenancing the peasants becoming traders, merchants (and competitors) in their own right.

Some countries - Sweden, Norway, the Netherlands, France and Britain - did better, recognising the imperative to support lifting millions out of destitution and despair. But Australia was not one. Rather, it is a deadbeat of international aid.

We allocate about $3 billion a year on overseas development assistance, or just over 0.3 per cent of gross national product, well below the 0.46 per cent average spent by all OECD countries, itself far short of the United Nations target, 0.7 per cent. The Rudd Government has modestly increased it from the derisory levels of the late Howard years, although it is still below the 0.47 per cent spent in first year of the Hawke government.

But even though some countries do better, the OECD estimated the total global amount of development assistance was about $US120 billion ($168 billion) last year. Compare that to world military spending in 2007 of about $US1.47 trillion.

The consequences of these selfish and counterproductive policies are becoming apparent.

In a globalising world, people are free to travel around the world almost as freely as capital. But when people move in large numbers, so do viruses and pathogens of all kinds.

In the past few decades there have been ominous warning signs that the rich world's failure to invest in the poor world's health systems might have serious global consequences. SARS, avian flu, swine flu and HIV/AIDS emerged, initially undetected and unreported, from the poorer countries where primary health-care systems were weak or non-existent. By the time the problem was understood, the damage was done. The pathogens spread around the world as fast as planes could fly.

The present outbreak of swine flu in Mexico is another tolling bell.

If the situation worsens, restrictions will be placed on travel to and from the United States, as happened in Asia at the time of SARS. Apart from the human toll of death and suffering, the airline industry could not survive a prolonged collapse in passenger numbers. This would have dire economic consequences, particularly for sectors dependent on mass travel and commerce.

The enemies that now pose an existential threat to our global civilisation are not "terrorists", "jihadists", teenage pirates or the few pathetic refugees fleeing the carnage visited upon their countries by the industrialised West. Rather they are slivers of virus, and molecules of carbon dioxide.

The vast conurbations of the developing world are largely unsewered. They have little clean water. They pile humans, pigs, chickens, dogs, cats and rats on top of each other. The largest cities each contain as many people as Australia. They are perfect incubators of species-hopping viruses of all kinds. And the viruses only have to make it to the nearest airport to make a global impact.

There is, however, no need to terrify ourselves about the inevitability of new pandemics.

We know how to prevent the spread of most pandemic diseases and to stop minor outbreaks from becoming major problems. A century ago, industrialised countries invested in sewers and water works and created basic primary healthcare systems available to all, regardless of income. Livestock was banished from the cities and instead raised and slaughtered in separate, hygienic new facilities.

It is in our own interest to give to our neighbours the power and resources to eradicate or mitigate these problems. We need to help them embark on massive sewering and water engineering programs, build robust primary healthcare systems and remove large-scale animal husbandry from the cities.

This may take decades, and cost trillions of dollars. But the investment will be dwarfed by the costs of a serious global influenza pandemic. A 2006 Lowy Institute paper by Warwick McKibbin and Alexandra Sidorenko estimated that a mild influenza pandemic would cost the world 1.4 million lives and close to 0.8 per cent of global gross domestic product (about $US330 billion in 2006 dollars). In an "ultra" flu pandemic, 142 million people would die and global GDP suffer a loss of $US4.4 trillion.

The costs of inaction about global heating are similarly staggering.

If we do not invest now in the public health and engineering required to make the cities of the developing world safe to live in, new pandemic diseases and global heating will bring about upheavals, suffering and the displacement of populations that will dwarf even the bloodiest wars of the 20th century.

Australia is contemplating spending vast sums on new armaments and engines of destruction to fight wars of a scope, scale and type unlikely to happen. We will lift our military spending to more than 3 per cent of GDP or about 10 times what we give to development assistance. But no Joint Strike Fighter can target an influenza virus, and no submarine can take out a molecule of carbon dioxide. As is sadly apparent in Afghanistan, armies cannot build or reconstruct nations or provide health care.

We all would be much better off if we immediately reversed the balance between military spending and development assistance. The billions should be spent where they will make a direct and rapid improvement in the human condition, not where they won't.

Bill Bowtell is director of the HIV/AIDS Project at the Lowy Institute for International Policy.

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Well said. The level of Australia's contributions to development is indeed paltry and well below what PM Rudd led us to believe would be the size of the Australian aid budget. We can afford to do much more and it is even in our selfish interests to do so.
Posted by MMcI, 29/04/2009 9:48:07 PM
I am disappointed that we, being one of the wealthiest countries in the world, are not pulling our weight compared to other OECD countries. From a pragmatic perspective, the Government should understand that increasing our humanitarian aid to developing countries will mean a lot to our global standing. It adds weight to our words on the world stage. In this sense foreign aid is a bargain. We reap more than what we put in. Obviously, there is also the moral obligation to help poorer countries as a global citizen, a citizenship Kevin Rudd acknowledges. I hope the Government will increase our humanitarian contribution and prop up AusAID soon.
Posted by TrnOvrANwLif, 30/04/2009 9:48:22 PM
Bill, the unspoken reason is not a feeling of helplessness that so many people cannot be helped by the West - instead the West quietly hopes that these poor populations will die off in massive numbers through neglect - end of problem for the West. To blame our governments for not doing more is to refuse to take responsibility as individuals for the wellbeing of other human beings. Many people do not give to charities citing the 'waste' of their donation dollar due to corruption, etc in the recipient country. But there are other ways to help, even if we only help disadvantaged people in our own country. If we are at all religious, we would do well to ponder that Heaven may only be open to the ones that suffered, not the ones that led 'good' but selfish lives.
Posted by ml, 2/05/2009 8:07:45 AM
And then one day the Lord made humans responsible and created the Free Market and Globalisation, but there was a test; he also created Greed. The Lord should have known better for it made failure inevitable and a few decades later he cried "Look at that God-awful mess!"
Posted by The real observer, 2/05/2009 11:59:13 AM
Charity begins at home,we have enough problems here with out sending money overseas,most of the aid falls into the wrong hands anyway.
Posted by yep, 2/05/2009 1:38:40 PM
What a self-righteous cheap shot. Australians gave generously to the tsunami appeal and bushfire appeal. First world governments lost confidence in the existing aid channels because of corrupt and inefficient leaders and bureaucrats putting their snouts in the trough before the money reaches its targets. I would love to see the author getting stuck into some of the tin-pot dictators, UN parasites and do-gooder committees who have destroyed people's good intentions over the years. I suspect that the author is probably one of those people who have destroyed confidence through inaction being hidden by sanctimonious rants.
Posted by Bill Smith, 4/05/2009 3:11:52 PM
What a load of unbelievable codswallop. Bill get a life. Socialism needs victims for socialism to have any relevance. The proletariat was one victim but unfortunately for you clowns, 'aspirational voters' screwed that. So now you guys in Marxs' pocket need more victims to be relevant, Here's a buzz! Make 'global warming' the next baddie so that everyone on the planet is a victim. Sorry Bill. I have a brain that can think. Mate, as we say here in the real world, 'You are full of sh*t'. Global warming and raising sea levels, are just part of the way our planet exists. Do you or any of your tribe, honestly believe that what we do in Australia, will have any effect on the global climate? Bear in mind that China builds a city the size of Brisbane every month? Mate you are dreaming! It's like the apology to our indigenous people. Might make a few people feel good, but has abount as much affect as a snowflake in Nauru. Channel your efforts into something that actually has an impact on people. You guys disgust me.
Posted by Al, 5/05/2009 10:13:25 PM
The greatest and most immediate threats to Australia's security and prosperity arise from a singular source: namely naive gullible people with an equally erroneous world view.
Posted by Robert, 6/05/2009 12:11:11 AM
Now that the global gag rule has been lifted by Obama and the current government has also allowed overseas aid to include access to safe abortion, contraception, condoms etc the growing demand on overseas aid may lessen. Hopefully population control in countries where the population is unsustainable is the best hope for improvement. They keep on breeding at unsustainable levels and we're supposed to keep giving them more. One important point the author of this article has failed to consider.
Posted by Felix, 6/05/2009 11:38:37 PM
We have charities coming at us from all directions asking us to increase our monthly contributions, followed by other appeals for donating more money to equally worthy causes. Most families try to help whenever they can. But to expect us to cure all the world's flaws in wealth distribution is asking the impossible. It is not only the moral question of the act of giving, but also a practical one. There is no guarantee that the funding/food will reach the people who need it the most. If any blame is to be cast, you have only to look at the corrupt governments/military dictatorships at the receiving end. Whole container loads of donated foodstuffs have been left rotting at the wharves, while the local officials were preoccupied with waging their latest military exercise. I don't oppose charity, but our nation has enough on its plate coping with the natural disasters such as flooding and drought, bushfires, rising unemployment, indigenous health and education issues, to name a few. We need to address these problems first, before we cast our net out to save the rest of the planet.
Posted by Marie Jacqueline Lee, 7/05/2009 12:55:53 AM
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The world is sick with swine influenza. Illustration: Simon Letch
The world is sick with swine influenza. Illustration: Simon Letch
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