Australia has topped a list of the biggest donors to the Pacific but new figures reveal China is focusing its efforts by spending big on its key relations in the region.
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Aid and development financing across the region has also soared to record highs as revealed in foreign policy think tank Lowy Institute's Pacific Aid Map released on Monday.
It comes as the federal budget committed more than a billion dollars in increased aid funding for its neighbours in the Pacific and south-east Asia, in a bid to strengthen regional security and the nation's influence.
The report, which covers the spending commitments and projects of 67 donors, shows aid increased in 2020 by 33 per cent on the previous year to $4.8 billion as the global pandemic struck the region, more than doubling from 2008.
Papua New Guinea received the most in development assistance reaching nearly $2 billion followed by the Solomon Islands and Fiji, which both surpassed the $300 million mark.
Australia alone spent $1.23 billion over 2020 spanning more than 5500 projects with most of the aid directed toward governance, health and education projects.
China, on the other hand, who is competing for influence in the region, played a much smaller financial role in providing aid during the pandemic's first year.
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Ranking eighth among donors, it spent $244.6 million across 150 projects, focusing more heavily on financing the infrastructure, transport and communication sectors.
While the data for the 2021 period remains incomplete, the figures suggest its aid has zoned in on key regional relations, including the Solomon Islands and Kiribati.
During the election campaign, it was revealed the Solomon Islands' Prime Minister Manasseh Sogavare had signed a secret security deal with China.
He has since insisted Australia remains the nearby archipelago's security partner of choice but the issue has raised alarm bells among experts.
Labor's first budget, handed down last Tuesday, showed Australia's official development assistance will be bolstered by an extra $1.4 billion, with $900 million set aside for the Pacific and $470 million for south-east Asia.
The budget sets aside $4.65 billion for aid, with more than $147 million over four years to fund key Pacific priorities, including the Australian Pacific Defence Force School and the deployment of AFP officers to the Solomon Islands.
Foreign Minister Penny Wong said the budget announcement was a step towards making Australia more influential.
"The Albanese government is working to make Australia a partner of choice for the countries of our region, to ensure our shared security, our shared economic strength and to shape the world for the better," Senator Wong said.
"Our assistance will help our regional partners become more economically resilient, develop critical infrastructure and provide their own security so there is less need to call on others."
- With AAP
Sarah Basford Canales
I'm a federal politics and public sector reporter with an interest in national security, integrity and regulation. Contact me with general tips and thoughts at sarah.basfordcanales@canberratimes.com.au or confidential tips to sbasfordcanales@protonmail.com.
I'm a federal politics and public sector reporter with an interest in national security, integrity and regulation. Contact me with general tips and thoughts at sarah.basfordcanales@canberratimes.com.au or confidential tips to sbasfordcanales@protonmail.com.
