Australia’s International Development Policy - for a peaceful, stable and prosperous indo-pacific

2 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Ministerial Foreword It has been almost 10 years since Australia’s last long-term development policy. Our world has changed. The coming decade will be decisive for peace, stability, and prosperity in the Indo-Pacific. The Albanese Government is committed to making Australia the partner of choice for our region. We recognise that development underpins stability, and that a prosperous and stable region is in our national interest. To ensure Australia’s development program delivers on this objective, we have reassessed our approach. This policy is the foundation on which we will build a program fit for our times. Australia will concentrate our resources on the issues that matter most to our neighbours. We will offer genuine partnerships based on respect, listening, and learning from each other. We will support local leaders to create local solutions while contributing our own strengths — our economy, our institutions, and the connections and knowledge of Australians. Senator the Hon Penny Wong Australia will play its part to help achieve the Sustainable Minister for Foreign Affairs Development Goals — the collective vision for a better world. We will continue to help our neighbours address climate change and its many impacts. We will support local leaders to address the barriers holding back progress. We will advance gender equality and the rights of people with disabilities. We will embed the perspectives of First Nations Australians into our development efforts. Finally, we will deliver a development program that is transparent, effective, and accountable. It will be a program that Australians can be proud of and have confidence in. Achieving our goals will require meaningful changes to how we think, plan, and engage. We will build a system that is open to new ideas, that listens and adjusts as needed. And we will continue our ongoing effort to restore Australia’s diplomatic and development capabilities. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 3 Ministerial Foreword The world and our region are more interconnected than ever before. So we recognise that the success of Australia’s region is also our success — positive development outcomes and impact is firmly in Australia’s national interest. I am proud of Australia’s offering as a development partner. As we look to deepen and strengthen our relationships, we will offer an international development program that is based on partner priorities, is transparent in its approach, is not transactional in nature, is high quality, and prioritises local leadership, job opportunities and procurement. I am also proud that as a partner, Australia will bring its priorities to the table by including gender equality, climate change and disability equity as core issues for action. This policy is a call for a whole-of-country approach. While government action is critical in this space, this policy offers signposts The Hon Pat Conroy MP to all Australian entities engaging with the region to work with us Minister for International and our partner governments and communities to support positive Development and the Pacific development impact. For its part, the Australian Government will draw on all tools of statecraft to deepen our relationships with the region and around the world — the international development program is at the heart of these efforts. This is a long-term policy offering which will help shape Australia’s international development program for years to come. This policy is the start of that long-term rebuild. It will take time. But we are committed to rebuilding the resources and capability required to make Australia a development partner of choice, and to delivering a program of which all Australians can be proud.

4 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Contents Acknowledgement of Country 2 Ministerial Foreword 3 Executive Summary 6 Objective 7 Key commitments 8 The policy process 10 How to read the policy 10 Policy Overview 11 1. A development program that reflects who we are 12 2. A development program ready for our complex world 16 The global environment we face 18 Opportunities and challenges in the Indo-Pacific 20 3. A development program that meets the needs of our region 24 Australian institutions, culture, expertise, economy, and regional ties 28 A quality, efficient and accountable program 31 Locally led efforts to drive change 33 Maximising collective impact 34 Development Finance Review 35 4. A development program that advances our shared interests 36 Effective and accountable states 38 State and community resilience 39 Connections with Australia and regional architecture 41 Collective action on global challenges 43 5. A development program that makes a real difference 46 Performance and Delivery Framework 47 Translating policy into action 48 Enhanced accountability and transparency 50 References 51 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 5 Farmer working on new rice-shrimp farming systems that adapt to environmental changes. Credit: Research Institute for Aquaculture No 2 Executive Summary

6 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Objective Our region is under pressure. We face the most challenging strategic circumstances in the post-war period. Climate change, global economic uncertainty, demographic and technological shifts are testing us all. As one of our tools of statecraft, an effective development program is key to building regional resilience. It is in Australia’s national interest to play our part through challenging times. The objective of Australia’s development program is to advance an Indo-Pacific that is peaceful, stable, and prosperous. A region that is predictable — where differences are resolved by international law and norms, and where we can cooperate, trade, and thrive. To achieve this requires sustainable development and lifting people out of poverty. Approach This policy presents a long-term vision for how our development program will meet the critical needs of our partners, while also supporting Australia’s national interests and the interests we share As one of our with our region. We seek relationships based on respect and partnerships that create tools of statecraft, economic and social value for us all. To achieve this, we support an effective our partners to: • build effective, accountable states that drive development their own development program is key to • enhance state and community resilience to external pressures and shocks building resilience. • connect with Australia and regional architecture • generate collective action on global challenges that impact us and our region. The Indo-Pacific — especially the Pacific, Southeast Asia and South Asia — will remain the focus of Australia’s development program, though we have interests beyond it. It is the region we know best, where we can make the most difference, and where our interests are most directly affected. Implementation Our approach to program planning and delivery will be underpinned by principles of quality, accountability, and responding to partner priorities. We will begin now, but many of these changes will take time. We will work with our partners to develop country and regional plans that translate our shared priorities into action. We will consult closely and consider diverse perspectives to ensure we are focusing on where we can add most value and achieve most impact. Our performance will be measured by indicators that will help drive change in our programs and hold ourselves accountable for the commitments in this policy. Finally, we will operate with transparency, offering all Australians confidence that their valuable resources are being deployed responsibly and effectively. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 7 Key commitments We will work together with our partners in Australia and abroad to build a development program that is fit for our times. To be more effective and responsive to the priorities of our region, we will: • build more genuine and respectful partnerships, including by refreshing our approach to country and regional plans • anchor our approach in our strengths, including by embedding the perspectives of First Nations Australians in our development efforts • support all people to fulfill their potential, including through new international strategies for gender equality, and disability equity and rights • respond to the calls of our region and evidence of the accelerating climate crisis by increasing our climate investments We will work and better addressing climate risks together with • support local leadership and local actors, including through a new Civil Society Partnerships Fund our partners in • develop a new humanitarian strategy to ensure we deliver Australia and results for people affected by crises, help reduce need, and build resilience abroad to build • use more innovative development financing to expand available a development funding. program that is fit To drive implementation and deliver quality, effectiveness, and for our times. transparency we will: • deliver an improved performance and delivery system • step up our focus on evaluation, and pilot impact assessments and real-time reviews • create a new online portal to provide access to key data and information about our programs • enhance accountability for our results, including through an annual Performance of Australian Development Cooperation Report • extend our reporting to relevant whole-of-government Official Development Assistance (ODA) and non-ODA activities to better capture Australia’s positive development impact • invest in our development capability to ensure more effective outcomes from our programs • improve the integration of development with other tools of statecraft, including through whole-of-government governance structures for development. NEXT PAGE: Credit: ADRA Australia/Luke Vodell

8 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 9 The policy process To ensure the policy delivers a program fit for our times, the Department of Foreign Affairs and Trade (DFAT) undertook extensive consultation with partner governments, civil society, and local organisations from across the Indo-Pacific, and around the world. We talked with more than 300 people from across the development sector in Australia and considered more than 200 public written submissions. DFAT established an External Advisory Group to provide contestability to the process, involving eight eminent Australians, and regional experts from the Pacific and Southeast Asia. The Australian Government values the high level of engagement throughout this process. We have listened carefully to the views expressed, we have learnt a considerable amount about the value and limitations of our practices and how we could reset and refocus our engagement. These ideas have been carefully considered and We have listened have informed the preparation of the policy. carefully to the How to read the policy views expressed, The first two chapters of the policy outline the foundations for our we have learnt development program — reflecting Australia and the world we face. a considerable • Australia’s international development policy starts with who we are. Chapter 1 outlines the interests and values that inform our amount about engagement. the value and • We are living in a more competitive, dynamic, and uncertain world that is being shaped by social, political, economic, environmental, limitations of our and technological forces. Chapter 2 discusses the complex practices and how international environment to which we will respond. The final three chapters of the policy outline Australia’s new we could reset approach to international development – how we will work, what we and refocus our will focus on, and how we will deliver. • Our approach is important to achieving results and maximising engagement. the effective use of our resources. Chapter 3 outlines how our development program will reflect Australia’s values, interests, and enduring connections to our region, and harness our strengths. • In a world of growing challenges, focus and discipline will ensure we tackle the issues that matter most to us and our region. Chapter 4 outlines what our development program will focus on in working with our neighbours to navigate development opportunities and shape our region for the better. We will work across four focus areas to advance our overarching objective of a peaceful, stable, and prosperous Indo-Pacific. • Robust systems for accountability and implementation drive continuous improvement and are essential to ensure an effective and targeted development program. Chapter 5 discusses how we will deliver a high quality, transparent development program that is responsive to partner needs and makes a real difference.

10 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Policy Overview OBJECTIVE A peaceful, stable and prosperous Indo-Pacific APPROACH Forging Drawing on Deepening quality Supporting Maximising partnerships Australia’s and transparency locally led change collective impact of respect strengths FOCUS Support partners to: Connect with Generate collective Build effective, Enhance state and Australia and regional action on global accountable states community resilience architecture challenges ACCOUNTABILITY AND IMPLEMENTATION Performance A reinvigorated Strategic Investment indicators on our approach to country frameworks monitoring and context, results and and regional for multilateral evaluation systems organisation planning partners AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 11 Pacific Australia Labour Mobility (PALM) scheme worker from Solomon Islands with a resident and artist at Australian Regional and Remote Community Services. Credit: Pacific Labour Facility CHAPTER 1 A development program that reflects who we are

12 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y An effective development program is not about choosing between our values and our interests. Our economy, our institutions, and the connections and knowledge of all Australians are powerful national strengths that will help shape our development program in a way that benefits both our region and Australians. Australia is in the Indo-Pacific and of the Indo-Pacific. We are home to the oldest continuing culture on Earth. First Nations Australians have shared culture and kinship connections in our region for tens of thousands of years and were Australia’s first traders and diplomats, exchanging goods and ideas with our closest neighbours. Today, as a multicultural country, we are home to people of more than 300 ancestries. Our connections span the globe. When Australians look out to the world, we see ourselves reflected in it. Equally, the world can see itself reflected in modern Australia. Our economy, our Australia supports the rights and freedoms enshrined in the United Nations Charter. We recognise that our national interests are institutions, and advanced by an international system that is anchored in international law, and we seek a world in which the rights of all people are upheld. the connections We will work for rules and norms that are clear, mutually agreed and consistently followed. We recognise that global challenges, such as and knowledge of climate change and pandemics, cannot be solved by countries acting all Australians are alone— they require collective action. We reaffirm our commitment to the United Nations 2030 Agenda powerful national for Sustainable Development and the Sustainable Development strengths that Goals (SDGs) as the globally agreed framework for international development. The SDGs reflect the interconnected nature of the will help shape world we face. We have made progress. But we must step up our efforts if we are to meet the SDGs, and the global commitment our development they reflect, by 2030. We all have a role to play in shaping the world program in a way for the better. Australia is proud of its democratic system of government. We have that benefits both a vibrant civil society, independent media, and robust institutions our region and underpinned by the rule of law. Our freedom of speech, and of religious and cultural expression, give strength to our society and Australians. politics. Our independent institutions support effective government and, in turn, reinforce public confidence in government. Australia’s natural environment and biodiversity are an important part of our identity. The Pacific and Indian oceans connect us with our closest neighbours. Australians are committed to implementing an ambitious climate agenda and increasing environmental protection, both at home and with our partners, to achieve a net-zero and nature-positive world. Our economy has demonstrated strength in the face of global instability. Our experience shows that free trade, open economic settings, and resilient institutions are a springboard for success. This is complemented by our dynamic private sector, universities, and research organisations. We have world-leading expertise that we are eager to share. Finally, the Australian Government is committed to doing the work to improve equality and equity outcomes for Australians, and sharing what we learn. This includes the national journey of healing with First Nations Australians. Acknowledging and reconciling this past enables us to tell our story more honestly and to find common ground with others. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 13 OUR COMMITMENT A Timorese non-government organisation Gender equality (NGO) founded by young people, engages discussion and action to improve youth Gender inequality compounds the most pressing global outcomes. Credit: Australian Volunteers Program/Harjono Djoyobisono development challenges. No country can meet its development potential without ensuring all its people have every opportunity to reach their full potential. Women are under‑represented in positions of leadership and decision-making, even though they are No country disproportionately affected by contemporary crises. More than 380 million women and girls worldwide are living in extreme can meet its poverty.1 Sexual and gender-based violence is rife, with an estimated one in three women experiencing physical and/or sexual violence development in their lifetime. Around 2.4 billion women of working age do not potential without have equal economic opportunities and 178 countries maintain legal barriers that prevent their full economic participation.2 Placing ensuring all its gender equality at the centre of development creates opportunities for people to thrive, making our countries stronger, more secure people have every and more inclusive. opportunity to Australia is developing a new international gender equality strategy to guide the breadth of Australia’s engagement, including how we reach their full integrate gender equality throughout our development partnerships and programs. We will continue to support specific gender equality potential. initiatives and ensure all development programs contribute to gender equality. We have reinstated a target for 80 per cent of all development investments to address gender equality effectively and the new requirement for new investments of more than $3 million to include gender equality objectives.

14 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y OUR COMMITMENT Disability equity and rights Dwi Suka Sulistyaningsih (left) and Ibnu Sukaca (right) of the Center for Improving Around 16 per cent of the world’s population, or an estimated Qualified Activities in Life of People with Disabilities (CIQAL). Credit: Australian 1.3 billion people, experience a significant disability. Nearly Volunteers Program/ Harjono Djoyobisono 80 per cent of people with disabilities live in developing countries.3 For development to be effective, people with disabilities must be partners on an equal basis. Australia has been an active leader in disability-inclusive development, making a difference by supporting For development disability rights initiatives and considering disability equity in everything we do. to be effective, Australia is developing a new disability equity and rights strategy people with to ensure that we remain a strong and consistent advocate for disability equity and rights. disabilities must We will continue to be led by the experiences and expertise of people be partners on an with disabilities when designing and implementing development activities. We support an active and leading role for people with equal basis. disabilities and their organisations at all stages across the development program. In multilateral forums, including the United Nations, we will continue to support an active role for people with disability. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 15 Timorese PALM scheme workers, Fina and Charlie, at Hillwood Berries in Tasmania. Credit: Pacific Labour Facility CHAPTER 2 A development program ready for our complex world

16 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Today’s global challenges are interconnected and have a compounding impact.4 Climate change and ongoing effects of the Today’s global COVID-19 pandemic have exacted immense costs. Development challenges are is stifled in places marked by conflict and fragility. Geostrategic competition is exacerbating existing vulnerabilities and threatens interconnected stability. Debt, inflation, and fiscal pressures are converging. Demographic and technological change are challenging old models and have a of development. Developing countries, especially their most marginalised citizens, are bearing the greatest costs of change. compounding impact. Escalating Disasters By 2030, there could be 560 medium-to-large-scale disasters Persistent per year, averaging 1.5 per day Poverty Looming Debt By 2030, around 600 Around 60 per cent million people will still of the world’s poorest live in extreme poverty countries are either in debt distress or at high risk Record Displacement Growing Vulnerability In 2022, over 100 million people were Around displaced by war, 3.3 to 3.6 billion violence, persecution, Global people live in highly and human rights Challenges climate-vulnerable abuses—a record high countries Unequal Wages Digital Divide At current rates, it will In 2022, over 2.7 billion take another 132 years people worldwide, to close the global mostly women and girls gender pay gap in developing countries, remain unconnected to the internet Rising Costs Insecure Jobs By 2030, climate change Globally, around 2 billion adaptation costs for workers were in informal developing countries may employment in 2022 hit USD300 billion annually These pressures test our resilience, but not our resolve. Australians want to live in a world that is peaceful and predictable. Our partners tell us they share this vision and that they want to work together to achieve it. Australia’s security and influence relies on playing our part in these challenging times. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 17 The global environment we face Climate change Climate change is the greatest shared threat to all countries. It is a global systemic crisis that is disrupting trade, causing water and energy shortages, increasing risks of pandemics, conflict and displacement, and reversing progress in the fight against poverty. It is challenging enough to address a single climate impact, such as food insecurity, but hazards will occur simultaneously and more Water security frequently as our climate continues to change. By 2030, 1.6 billion people Measures to adapt and build resilience to climate impacts are will lack safely managed urgently needed to defend against climate-induced loss and drinking water.5 damage. Accelerating our efforts requires major public and private investment — at a time when many countries will have higher debt and competing demands on public spending. Effective use of resources will be critical to achieve our aims. Demographic and social trends The world’s population continues to grow, though at a slowing rate.6 For countries with ageing populations, maintaining workforce participation and productivity will be difficult. For countries with an increasing proportion of young people, the challenge will be to create sufficient and decent jobs for citizens. In many countries, health systems are struggling to provide Measures to universal care and combat disease. Children and young people adapt and build cannot access a good education. Vulnerable people are missed by social safety nets. Making gains is particularly difficult in areas resilience to marked by violence, conflict, and fragility, where the risks of transnational crime, corruption, and other threats to stability climate impacts and sovereignty are heightened. Harnessing opportunities and mitigating risks requires effective institutions, equitable services, are urgently and improving critical infrastructure. needed to Technological changes and economic pressures defend against New and emerging technologies continue to alter our world in profound and unpredictable ways. Advanced manufacturing, climate-induced artificial intelligence and other technologies are transforming loss and damage. workforces. New jobs will be created and old jobs lost, generating demand for education and upskilling. Technologies that increase human connectivity will require strong safeguards to reduce risks such as foreign interference, disinformation, loss of privacy, and infringements upon individual security, rights, and freedoms. Strong, effective leadership from governments, the private sector and civil society is needed to tackle complex structural reform. We are facing a period of global economic instability, during which higher interest rates and inflation will dampen growth. Countries are navigating a shift towards protectionism, fragmented trade, and disruptions to supply chains. Environmental degradation and NEXT PAGE Australian Disaster Assistance Response Team member overlooking Türkiye catastrophic declines in biodiversity are threatening the ecosystems earthquake response, February 2023. that support human health, wellbeing, and the global economy. Credit: DFAT

18 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 19 Opportunities and challenges in the Indo-Pacific Australia’s development program will remain focussed on the Indo‑Pacific. This is the region we know the best, where we can make the most difference and where our interests are most directly affected. There is great opportunity in the Indo-Pacific region and each Corruption is country within it, and much to be optimistic about. Indo-Pacific a global challenge countries have made extraordinary development progress in recent decades. Hundreds of millions of people are living longer, healthier, almost 1 in 6 businesses have received bribe and more productive lives. Helping to sustain equitable economic requests from public growth that can lift the living standards of people in our region officials.7 makes Australians more secure. However, our region faces vexing strategic circumstances. The security and economic dynamics that have held for decades are shifting. 22 of our 26 nearest neighbours are developing countries, The opportunities and some remain fragile. Progress has been uneven and can be eroded quickly — as shown by the pandemic. Corruption, fragility, and challenges and poor governance continue to hold some countries back. we face as a The opportunities and challenges we face as a global community, from climate change to social inequality, are found — and often global community, magnified — in the Indo-Pacific. As we move forward, each country’s journey will be unique, reflecting our region’s immense diversity. from climate The Pacific change to social Our bonds with countries of the Pacific are strong and inequality, are longstanding — forged in times of crisis but sustained in periods of peace and prosperity. found — and often We are dedicated to achieving our shared aspirations and we will magnified — in the respect Pacific priorities at every step. Together we must build resilience to climate impacts to safeguard the liveability of our Indo-Pacific. region. We must protect the Blue Pacific that connects us, feeds communities, drives economies and is central to Pacific cultures. Public debt in the Pacific is expected to almost double by 2025, compared to 2019.9 The increase in the debt servicing burden will exacerbate challenges and impact critical health, education, and social services. We will support each nation in their endeavours to unlock new avenues to prosperity, including as they empower women and girls, enhance digital connectivity, and diversify trade on global markets. USD62 billion The external debt service payments by the world’s poorest countries are expected to surge by 35 per cent to over USD62 billion in 2022.8

20 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y OUR REGION’S PRIORITIES Papua New Guinean man dressed in cultural attire at 80th Anniversary of Kokoda

2050 Strategy for the Blue Pacific Continent commemoration ceremony, November 2022. Credit: DFAT Endorsed by Pacific Islands Forum (PIF) leaders, the 2050 Strategy for the Blue Pacific Continent provides the blueprint to advance Pacific-led regionalism. The strategy was developed by the people of the Pacific and articulates the future the Pacific wants to create Australia is together, and a framework to realise it. The strategy reflects Pacific priorities. It resulted from extensive committed to national and regional consultation with PIF members, the Council of Regional Organisations in the Pacific, Pacific-based civil society listening to and organisations, and specialists from within and beyond the region. being guided by Australia is committed to listening to and being guided by the wisdom of Pacific voices. We understand that a strong, united the wisdom of region is central to protecting our shared interests in a peaceful, Pacific voices. prosperous, and resilient Pacific. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 21 Basic Education Quality and Access in Laos (BEQUAL) program. Credit: BEQUAL Southeast Asia Australia shares a region and future with Southeast Asia. Our economies and communities are deeply interwoven, as is our sense of peace and security. Together we aspire to a region where Together we countries cooperate, trade, and thrive; in a region where sovereignty is respected and disputes are resolved not by power but by agreed aspire to a region rules and norms. As a Comprehensive Strategic Partner, we are committed to the centrality of the Association of Southeast where countries Asian Nations (ASEAN). cooperate, trade, Southeast Asia has seen a steady decline in poverty, from almost half the region’s population to around one in eight people.10 and thrive. We will work with our Southeast Asian partners to sustain and protect hard-won development gains including by jointly investing in reforms. Economic productivity and investment in decent jobs, innovation and the clean energy transition are critical to the region’s future.

22 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y OUR REGION’S PRIORITIES ASEAN Outlook on the Indo-Pacific As its first Dialogue Partner in 1974, Australia is a leading economic, development and strategic partner for ASEAN. We are committed It is up to all of us to working with ASEAN to advance the ASEAN Outlook on the to work towards Indo-Pacific, in support of ASEAN centrality and underpinned by our Comprehensive Strategic Partnership. Australia’s a strategic development program is a key vehicle for our support to implement the ASEAN Outlook. equilibrium in the Our practical collaboration supports ASEAN members to cooperate region — with effectively on complex economic, security and other challenges. By working together, we are tackling some of the region’s most ASEAN at its pressing shared priorities — climate change, rapid digitalisation, and knowledge and skills development. centre. It is up to all of us to work towards a strategic equilibrium in the region — with ASEAN at its centre. South Asia South Asia is an important part of our vision for a peaceful, stable, and prosperous Indo-Pacific. Our engagement with its dynamic countries is growing. Almost half of the population of South Asia is aged under 24 years, and over one million people are set to enter the workforce every month until 2030.11 The growing effects of climate change and continued social inequality are dampening opportunities. We will support partners expand education programs and build resilient cities and infrastructure. Australia is connected to many South Asian countries by the Indian Ocean, and we will continue to support the productive and sustainable use of its resources. Beyond the Indo-Pacific Shaping our world for the better also requires acting beyond the Indo-Pacific. In our interconnected world, events in any one region The amount of plastic in can reverberate globally. Australia has important partnerships in the ocean will at least Africa, the Middle East, Latin America, and the Caribbean. Amongst double by 2040 the diverse array of countries in these regions, some have a high More than 17 million metric prevalence of food and water insecurity, fragility, and displacement. tons of plastic entered the We will continue to play our part in responding to development ocean in 2021. This is projected to double or triple by 2040.12 and humanitarian needs in these regions, including through our multilateral engagement. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 23 Solomon Islands student washes their hands with water from newly-installed water tanks. Credit. Save The Children CHAPTER 3 A development program that meets the needs of our region

24 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Australia’s approach to sustainable development will reflect our interests, values, and enduring connections to our region. Our investments will be guided by context and our partner countries’ priorities. We will focus on what is needed and how we can best support countries to achieve their goals. We will deploy both our ODA and non-ODA support flexibly and creatively, to achieve the highest quality outcome in each circumstance. We will draw on the expertise and experience of others to find the best solutions. OUR COMMITMENT Development Capability To deliver an effective development program, we must invest in the people who will deliver it, and value their skills and experience. The May 2023 Budget delivered an immediate and ongoing investment in the core skills required to deliver an effective and high quality international development program, including program design, monitoring and evaluation, procurement and transparency. Through ongoing efforts to lift DFAT’s broader capabilities we are investing in the skills required to deliver the commitments in this policy. We will pilot and implement innovative ideas and approaches to develop a skilled cadre of development professionals. We will also encourage officers to undertake postings in the Indo-Pacific; ensuring high quality training and learning opportunities are available and encouraged for all staff, including Senior Executive Service officers; and developing a capability pipeline for emerging thematic priorities. This policy recognises that DFAT has a unique role to play as Our development program is enriched for the knowledge, networks and experience of the lead government agency implementing the international our locally engaged staff. In their more than development program. Whole-of-government agencies and 26 years at the Australian High Commission, staff that are responsible for ODA implementation and broader Setaita and Tina have been a critical part of delivering our Vuvale Partnership with Fiji. Indo-Pacific engagement will also participate in DFAT training Credit: DFAT to ensure consistent and impactful approaches that meet our partner countries’ priorities. We recognise the vital role of locally engaged staff in delivering a high quality development program. They know the landscape, they have the insights that we rely on and they have the management skills we need. We will continue to invest in their skills, opportunities, We recognise and careers. We will deliver opportunities for development-focused locally engaged staff to take greater responsibility and leadership. the vital role of Having our locally engaged staff as the face of our international development program is the first step we can take to ensuring an locally engaged effective locally led approach to our program delivery. staff in delivering This is the start of a longer-term process, and we recognise that building up development capability does not end at DFAT. All parts a high-quality of the development ecosystem, including our commercial partners, civil society organisations, and bilateral and multilateral partners, development have a role in building the collective capability we need to address program. future development needs. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 25 We will work closely with, and be guided by, our partners to ensure their needs are reflected in country plans and program implementation. We will ensure diverse voices are heard and make sure women and girls are engaged in meaningful ways. We will start from a place of respect and an appreciation of the strengths and interests that all partners bring to the table. We have strong and enduring relationships in the region on which we will build. Our partners have been clear that they expect Australia to take ambitious action on climate change at home and abroad. It remains a foremost concern of our Indo-Pacific region and is the single greatest threat to the livelihoods, security, and wellbeing of Pacific peoples. We will do more to help partners achieve their commitments under the Paris Agreement and accelerate global ambition to address the climate crisis. Access to electricity We will harness the valuable connections, knowledge and expertise that reside in local communities. Civil society organisations bring By 2030, 670 million people will remain strong relationships, networks and knowledge that can deliver without electricity.13 development impact. We also value the important connections and work being done by diaspora, labour, youth, and faith-based groups across Australia in partnership with the region to support development outcomes. With daunting challenges facing the world, we have much to learn from Australia’s First Nations peoples. Elevating the perspectives of First Nations Australians to the heart of our development We will start program will take time and involve new ways of working, but better connecting our domestic and international experiences will create from a place of opportunities for mutual learning and benefit us all. respect and an To deliver our new approach to partnership, Australia will: • enhance our country and regional planning, finalising new appreciation of Development Partnership Plans together with our partner the strengths and countries • undertake a mid-cycle review of Development Partnership Plans interests that all that captures, shares, and applies learning about our progress partners bring to • consider climate risk in all bilateral and regional Development Partnership Plans the table. • ensure that, from 2024–25, at least half of all new bilateral and regional investments valued at more than $3 million will have a climate change objective, with a goal of reaching 80 per cent in 2028–29 • align bilateral programs with partners’ Nationally Determined Contributions and National Adaptation Plans • ensure 80 per cent of investments address gender equality effectively, and all new investments over $3 million include gender equality objectives • foster cooperation between First Nations Australians and regional partners through the development program.

26 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y CASE STUDY Embedding First Nations Australians’ perspectives in Torres Strait Regional Authority CEO, Vonda Malone (left), meeting with development Australian Volunteers Program’s Deputy Director for the Pacific, Apai Rokotuni Indigenous Pathways is an First Nations Australians-led initiative (right), during a community engagement of the Australian Volunteers Program that aims to expand and visit to Thursday Island. Credit: Australian strengthen Aboriginal and Torres Strait Islander participation Volunteers Program and connect Australian First Nations Peoples and organisations with overseas counterparts. In Papua New Guinea, the South Fly Ranger Program has adapted Programs like the Indigenous Australian community ranger model to support Indigenous remote communities. They now have a cohort of 178 community rangers, 38 per cent of whom are women. Pathways In 2018, two community rangers from Western Province demonstrate the participated in the Indigenous Rangers Forum held in Australia, which brought together representatives of 72 ranger groups from mutual benefits across northern Australia. of engaging Programs like Indigenous Pathways demonstrate the mutual benefits of engaging First Nations Australians in the development First Nations program. While modest, they provide a foundation on which we can build. Australia’s Ambassador for First Nations People will lead the Australians in the efforts to embed the perspectives and experiences of First Nations Australians into the development program and foster cooperation development with regional partners. program. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 27 Australian institutions, culture, expertise, economy, and regional ties We recognise that Australia’s development program cannot deliver the outcomes we seek in isolation. All elements of our national power must be deployed to respond to the needs of our region — integrating development with our diplomatic, trade, economic, defence, immigration, sporting, cultural, scientific and security efforts. Australian Government agencies have great expertise, experience, and capabilities to support sustainable development. Their networks and peer relationships with our region help us to deliver timely, effective, and tailored support that draws on Australia’s assets. CASE STUDY Participant from WINS initiative conducting Connecting through common goals an interview. Credit: WINS Women in News and Sport (WINS) provides Indo-Pacific female journalists with the tools to forge successful careers in the Focusing on male‑dominated world of sports media. Focusing on skills training and mentorship, WINS connects skills training early-career and senior journalists to strengthen best practice. A and mentorship, growing alumni program adds to this valuable network. WINS has supported 355 participants from 11 countries to deliver WINS connects ground-breaking coverage of the world’s biggest sports events, early-career and including the FIFA Women’s World Cup. By promoting women in sport from elite to community levels, and senior journalists amplifying women’s voices in sports coverage, WINS makes an important contribution to gender equality and social inclusion in our to strengthen best region, highlighting the crucial role of media development. practice.

28 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y We also recognise Australia’s strengths and contributions to development beyond government. We will draw on our labour market and migration pathways. We will strengthen trade and business ties with the region, including through Australian banks and superannuation funds. We will build on our existing connections through education, religious and cultural institutions, trade unions, philanthropic organisations, youth organisations, the arts, and the media. We will seek to expand our sporting connections as well as links with diaspora communities across the Indo-Pacific. Remittances Australia’s world-class science, innovation, and technical agencies, as well as our tertiary and research institutions, are a valued source In 2022, global remittances grew to an estimated of expertise and ideas in our region. We will continue to build USD626 billion.14 our region’s capacity, including through scholarship and training programs that support a diverse array of future leaders. Australia’s electoral system, legal and economic institutions, free media, and labour movement are national assets. We value their strong networks, peer support and sharing of expertise, and will seek to strengthen existing relationships among our institutions together with our partners. This policy will serve as a signpost to our institutions and entities operating in the region to guide engagement that supports This policy will positive development impact. serve as a signpost To make the most of our national strengths, Australia will: to our institutions • maximise the value of Australian expertise by expanding research funding and outlining a clear development research agenda and entities • deepen the partnerships between Australian institutions operating in the and the region, including through the reinvigorated Australia Awards Fellowships program region to guide • expand joint training and collaborative analysis with engagement that development organisations. supports positive development impact. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 29 CASE STUDY Australia Awards Women Leading and Investing in leadership and influencing change Influencing 2023 program participants and Steering Committee members. From the establishment of the Colombo Plan in 1951 to the current Credit: DFAT/Esh Photography Australia Awards program, education has been central to Australia’s partnerships with the region. Our international scholarships have enabled more than 100,000 leaders to study in Australia or the Pacific and are a foundational feature of our bilateral relationships. Australia Awards will continue to contribute to development Our international outcomes by investing in the education of a new generation of local leaders with strong links to Australia. scholarships have Following pandemic disruptions, we are rebuilding the Australia enabled more than Awards program to ensure it remains competitive to attract future leaders. We will expand the mix of short and long-term study 100,000 leaders to options as well as professional placements and leadership initiatives. study in Australia Alongside the New Colombo Plan, this will help deepen individual and institution connections with our region. or the Pacific. The Women Leading and Influencing program is a Pacific-led initiative to support Pacific Australia Award’s students and alumni build skills and networks to exercise leadership in their communities. We recognise gender equality in leadership matters and the crucial importance of women having a voice and participating in decision‑making.

30 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y A quality, efficient and accountable program Effective development relies on a tailored approach that responds to different development contexts. We will strengthen the evidence base underpinning our programming and enhance our evaluation and learning. This will be key to achieving sustainable outcomes. We will ensure these insights are accessible and inform the decisions we make together with our partners. Our assistance will continue to be delivered in unpredictable and uncertain environments, including in fragile and conflict-affected places. Making a real difference requires maintaining a long-term focus while trying new options and learning as we go. We must Violent conflicts balance accountability with space for innovation and a greater The world is witnessing the tolerance for risk. We will work with the partners best able to deliver largest number of violent the outcomes we seek in each context and ensure all of them are conflicts since 1946, with held to high standards of performance and value for money. a quarter of the global population now living in We will need to engage with uncertainty and reduce transaction conflict-affected countries.15 costs to drive efficiency. We will maintain our high standards, including our robust risk management processes to prevent fraud, as we explore new ways of working. We are committed to supporting communities where we work and operate, respecting people and preventing harm to them. We have no tolerance for sexual exploitation, abuse, and harassment, or for harm to children. We will maintain safeguards that protect these communities and the environment. We will deliver our accountability to Australians and our partners through improved transparency that makes it easier to access data and documentation on our programs in a timely way. We will continue to undertake annual assessments to ensure the We will deliver effectiveness of our investments. We will also produce a multi-year our accountability evaluation workplan, continue to publish evaluation reports, and apply evaluation findings. to Australians To sustain our commitment to a world-class development and our partners program, Australia will: • create a new development portal that increases through improved the accessibility and transparency of information on transparency. Australia’s development programs • report annually on the performance of Australia’s development program, including whole-of-government development activities, through a Performance of Australian Development Cooperation Report • give development expertise a higher priority across DFAT, including through creating a cadre of Senior Responsible Officers for bilateral and regional development programs to improve transparency, accountability and program coherence • enhance coherence in our approach through whole-of- government representation on DFAT’s governance committee overseeing the development program • expand our reporting to provide a better picture of Australia’s whole-of-government ODA and relevant non-ODA support. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 31 CASE STUDY Vanuatu Skills Partnership. Credit: DFAT Supporting local coalitions for change A strong The locally led Vanuatu Skills Partnership (VSP) is building the skills Vanuatu needs to grow its economy, adapt to climate change, and connection to drive low-carbon growth in tourism, agribusiness, handicraft, and construction sectors. Vanuatu leaders A strong connection to Vanuatu leaders and community is central and community to the VSP. It works within local structures and institutions and supports local coalitions to achieve positive systemic change. By is central to the mainstreaming gender equality and disability inclusion, the VSP is Vanuatu Skills working to enhance prosperity for everyone. Partnership.

32 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Locally led efforts to drive change Governments, businesses, communities, and people in the Indo-Pacific are the key actors in achieving their own development ambitions. Our partners have told us that local opportunities to engage in Australia’s development program are currently limited and that the transaction costs are too high. We will seek to reduce these barriers by increasing program flexibility while maintaining robust risk-management processes and compliance with all relevant legislative requirements. We will support local leadership, solutions, and accountability, including by channelling funding to local actors. This includes providing direct financing to partner governments, particularly in the Pacific, facing fiscal distress. Funding for local partners has a double dividend, creating local jobs and delivering direct economic benefits, as well as improving our impact. There is no ‘one-size-fits-all’ solution, and we will continue We will support to adapt our approaches. local leadership, Australia recognises the value of civil society, and that civic space is shrinking in many parts of the world. Direct support for, and solutions, and engagement with, civil society organisations will continue to be an integral part of how Australia implements its development program. accountability, Australia also recognises that social exclusion, marginalisation, including by and poverty are interconnected. Marginalised people are disproportionately impacted by economic shocks, climate change channelling and humanitarian crises. Supporting our region to ensure the benefits of prosperity and stability are extended to all, means we funding to local must tackle the unequal power systems and structures that stifle actors. economic growth and human development. To better support local leadership Australia will: • take a more flexible and innovative approach to program planning and implementation, including design, contracting and delivery arrangements, and monitoring and evaluation approaches that increase participation from local actors • provide multi-year funding and capacity development to local organisations, with support as needed to meet policy requirements • take risk-informed opportunities to provide direct financing to partner governments to support them in achieving their economic and social development aspirations • design a new Civil Society Partnerships Fund that will support local civil society organisations. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 33 CASE STUDY Palau solar plant. Credit: DFAT High-quality finance to meet our partners’ energy needs Australia is partnering with Palau to reduce its dependence This project on imported fossil fuels in support of low-emissions, climate resilient development. is an example Through the Australian Infrastructure Financing Facility for the of the AIFFP’s Pacific (AIFFP), Australia provided financing to Solar Pacific Pristine Power to help construct Palau’s first major solar and battery energy market-leading storage facility. When operational, it will generate over 20 per cent approach to of the country’s energy needs. The project is an example of the AIFFP’s market-leading approach to infrastructure infrastructure financing, innovation, and quality. It exceeds global financing, standards on social and environmental safeguards, including by ensuring supply chains are not exposed to modern slavery. innovation and This project also demonstrates how Australian financing can quality. leverage private sector investment to deliver critical infrastructure projects without imposing unsustainable debt burdens. Maximising collective impact We welcome increased international interest in the Indo-Pacific and will work with our partners in the region to harness this attention in the most effective way. Australia will cooperate with others to amplify collective efforts, reduce duplication, and support development outcomes. We will work through regional partnerships, including the PIF, ASEAN, the Indian Ocean Rim Association (IORA), Asia Pacific Economic Cooperation (APEC), and the Indo-Pacific Economic Framework (IPEF) to ensure a coherent approach to regional engagement on development. The Quad will also afford opportunities to coordinate development programming, deliver public goods, and provide partner governments with choices. Collective action is needed to address global challenges such as climate change, conflict, and pandemics. To promote and support our regions’ priorities, we will continue our strong work with multilateral partners across the United Nations system and with the Organisation for Economic Cooperation and Development (OECD), the World Trade Organization (WTO), thematic funds, and multilateral development banks. We will continue to champion the voices of the Pacific in our global engagement. When we work together, we are better able to secure outcomes that advance our region’s shared interests — from supporting the leadership of the Pacific on climate change in the

34 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y International Court of Justice, to addressing harmful, unsustainable fisheries subsidies through the WTO. A lack of access to high-quality financing for development throughout the Indo-Pacific remains a major constraint to economic growth. Demands cannot be solely met by the public sector. We will continue working with partner countries to find new avenues for growth and manage debt burdens, including advocating We will continue for countries in our region to attract finance from the private sector, multilateral development banks and philanthropies. We to champion will also do more to leverage Australian funding by developing innovative financing solutions. the voices of To strengthen our collaboration with international the Pacific actors, Australia will: in our global • implement recommendations from the Development Finance Review by expanding the scale, effectiveness, and transparency engagement. of Australia’s development finance to enhance Australia’s position as a relevant, reliable, and responsive partner in the Indo-Pacific • commit to ongoing engagement with the SDGs and the Voluntary National Review process • ramp up and reset whole-of-government coordination and proactive collaboration with developed and developing countries to accelerate implementation of the 2030 Agenda. Development Finance Review The Government commissioned DFAT to review how new forms of finance can address increasingly complex development challenges facing the Pacific and Southeast Asia. The Review’s recommendations build Australia’s capability to use the full suite of development financing approaches to support our Indo-Pacific family address urgent development needs and vulnerability to climate change. It will also support greater transparency of Australia’s development finance, including reporting on development impact. The Government accepts all eight recommendations of the Development Finance Review. The Government will continue to provide sovereign finance through grants or highly concessional loans, particularly to Pacific Island countries. This will be done without exacerbating economic and fiscal fragility, including by ensuring our lending does not lead to Financing gap unsustainable debt burdens. The SDG financing gap The Government will expand its use of innovative development increased by at least finance to catalyse private sector financing, particularly in Southeast 50 per cent, totalling USD3.7 trillion in 2020.16 Asia. This includes Australian Development Investments (ADI), which will be capitalised up to $250 million to catalyse private impact investment into the Indo-Pacific. ADI will build on the Emerging Market Impact Investment Fund pilot program, which has demonstrated the power of crowding in private capital for development impact. This will deliver development impact and address climate challenges at a scale beyond what can be achieved through traditional development assistance. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 35 The Australian Volunteers Program along with HELP (Health, Education, Livelihood and Participation for all) resources supported fisherwomen from Wewak, Papua New Guinea, to improve their long-term economic options. Credit: Australian Volunteers Program/ Harjono Djoyobisono CHAPTER 4 A development program that advances our shared interests

36 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y The objective of Australia’s development program is to advance a peaceful, stable, and prosperous Indo-Pacific region. This depends on supporting sustainable development and lifting people out of poverty. Achieving this will require sustained action through the development program and beyond. We will support our partners to: • build effective, accountable states that drive their own development Underpinning • enhance state and community resilience to external our efforts is the pressures and shocks • connect with Australia and regional architecture recognition that • generate collective action on global challenges that impact us investing in people and our region. is indispensable to This broad framework will guide how and where we use our resources and capabilities, together with our partners. Underpinning lasting progress. our efforts is the recognition that investing in people is indispensable to lasting progress. Australia will be active and agile in helping our Indo-Pacific neighbours navigate their development needs now and into the future. Our goals must be matched with our means, which will require focus and discipline. Our long-term focus also requires agility — we will need to be responsive to new opportunities and threats. Balancing these demands will at times require difficult decisions about where and how to allocate our resources, in coordination with other partners. CASE STUDY Investing in future generations Australia and Laos are working together to ensure every child receives a quality education, and create a lasting legacy for future generations. The Basic Education Quality and Access in Laos program (BEQUAL) is giving more children, especially those experiencing disadvantage, the skills they need to thrive. This locally led initiative Global learning crisis has supported the development of a new primary curriculum, COVID-19 has deepened the accompanying teaching and learning materials, and the training of global learning crisis, with teachers nationwide. It is now focusing on improving professional 24 million students who may development. This significant partnership is laying the foundations never return to school.17 of an inclusive, high-equality education system in Laos. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 37 Effective and accountable states Australia will work with partners to improve essential services that are foundational for tackling poverty and inequality, expanding economic mobility, and driving sustainable growth. We will support efforts to strengthen social protection systems and break down barriers that unfairly exclude people. Australia’s international development program works in partnership to support reform, service delivery, and system strengthening — it is Inequality not a substitute for a partner country’s own resources and efforts. The pandemic caused the first rise in income Structural reforms can improve economic performance and prevent inequality between serious downturns and crises. We will share our expertise and own countries in a generation.18 experience with partners as they design and implement their own reforms, including to diversify and open economies, create decent jobs, and improve business-enabling environments. With pressure on many public budgets, we will increase our blended finance capability to catalyse private sector investment. Rather than seeking to replicate Australian models, our approach will be specific to the needs and circumstances of each country. Where Rather than local strategies are already working, we will look to strengthen their efficacy. Australia will respect and promote civic space, recognising seeking to the distinct nature and value of civil society in each country. replicate Effective states and their citizens benefit from transparent, accessible, and responsive governance. We will work with partners Australian models, to strengthen their public institutions, including as they mediate our approach and manage disruptive influences. As we learn and adapt together, Australia will offer support for positive technological change and an will be specific open, free, and secure internet. to the needs and Where corruption and money laundering occur they are impediments to sustainable development. We will support circumstances of compliance with relevant international standards. Recognising security and development are indivisible, we will help partners each country. combat threats to community safety, stability, and security, from terrorism and violent extremism, human and drug trafficking, and other types of transnational crime. We will continue efforts to end forced labour and other forms of modern slavery. Child labour 1 in 10 children are subjected to child labour worldwide.19

38 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y CASE STUDY The Australia-Indonesia Partnership towards an Inclusive Society (INKLUSI). Credit: INKLUSI Strengthening vibrant civil society networks in our region The Australia-Indonesia Partnership Towards an Inclusive Society (INKLUSI) increases the contribution of civil society, in partnership INKLUSI supports with government, to gender equality, and disability and social inclusion. INKLUSI supports civil society organisations to mobilise civil society around issues that align with their mandates, constituencies, and values while also strengthening the enabling environment organisations for this engagement. to mobilise For example, INKLUSI civil society partners have worked with government to strengthen access to health, education, and other around issues social services, and helped women and marginalised groups that align with participate in government policy and planning processes. INKLUSI also supports platforms and networks to bring together civil society their mandates, organisations with similar goals, and uses funding models that facilitate equal partnerships, promote long-term sustainability, and constituencies, allow for locally led solutions. and values. State and community resilience Impacts from climate change and associated disasters are growing more severe and are outpacing our collective ability to manage risk. In response, we will prioritise prevention and risk reduction across Australia’s development investments and humanitarian assistance. Our multilateral partnerships will advance this goal and we will support and amplify Pacific voices to shape international negotiations and action. Finding local solutions will be critical to mitigate and adapt to climate change, and to implement measures Species extinction to avert, minimise, and respond to loss and damage. The current rate of global Wellbeing is often linked to the state of the natural environment species extinction is 10–100 times higher than and the opportunities it offers. Complementing our work on climate the average over the past change, we will expand support for environmental protection and 10 million years, and the biodiversity conservation, including to combat plastic and other rate is accelerating.20 pollution. We are committed to supporting our partners to protect biodiversity and achieve a nature-positive world. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 39 Infrastructure is the backbone of every economy and society. We will ensure Australia will work with its partners to deliver development projects that can cope with, and adapt to risks, including from climate infrastructure change, disasters, and cyber intrusions. We will share our experience and expertise in infrastructure policy, planning, preparation, programs procurement, and financing. We will ensure infrastructure programs prioritise local employment and procurement as another way of prioritise local driving local development outcomes. We will support partner employment and governments to establish the systems and resources they need to maintain new infrastructure. We will also work to expand partners’ procurement financing choices, including from the private sector. as another way The COVID-19 pandemic has highlighted the vulnerability of many health systems. Australia can share our knowledge, experience, of driving local networks, capability, and learning. In our global engagement, we will play our part to strengthen global health architecture, so our region development is better prepared for future shocks. We will support efforts to prevent and manage the spread of disease, including for HIV/AIDS, outcomes. tuberculosis, and malaria, and for non-communicable diseases and mental illness. We will also help expand universal health coverage, support for sexual and reproductive health and rights, and access to water, sanitation, and hygiene services. CASE STUDY Australian High Commissioner, HE Emily Luck, visiting the SFHA team in Savai’i. Credit: DFAT Expanding access to essential health services Barriers remain to Samoan women and girls accessing information about their sexual health and reproductive rights. In response, Australia has partnered with the Samoa Family Health Association (SFHA) to run mobile clinics that bring essential sexual health and reproductive health services to rural villages. These mobile clinics help overcome transportation and cost barriers, as well as the stigma associated with seeking medical care. Infrastructure The infrastructure investment Providing comprehensive medical services and education on sexual gap is estimated to reach health and reproductive rights empowers women and girls to take USD15 trillion by 2040.21 control of their own health and make informed decisions about their bodies and futures.

40 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Connections with Australia and Francisca, a leader of her local Water User Group in Timor-Leste attending to crops regional architecture after a water system was installed in her village. Credit: WaterAid/Tariq Hawari Strong regional architecture supports a more peaceful, stable, and prosperous region — where all voices are heard, countries cooperate and trade, and disputes are managed and resolved in accordance with international law and norms. We respect and We stand strong with, and continue to respect and support, Pacific led regionalism and unity. As a member of the PIF, we value its support role in directing our collective strengths to shared challenges. We Pacific led are also committed to the centrality of ASEAN, which has brought increased order, security, and prosperity to our region. We are regionalism and focused on realising the shared benefits of our Comprehensive Strategic Partnership with ASEAN. unity, and the Australians engage with our region in a range of ways, and we centrality of will invest further in this connectivity through our international scholarship, volunteers, education, and labour mobility programs. ASEAN. In doing so, we will create more opportunities for the region’s future leaders and better harness the expertise of alumni from our programs. Facilitating greater linkages between education systems will help achieve better outcomes and new pathways. This will complement our support for education, which is fundamental to expanding opportunity for everyone and to forging the next generation of leaders. We will invest in partner-led initiatives that improve schooling, vocational training, and employment services. Illegal fishing All countries rely on the sustainable, secure, and lawful use of our oceans and seas. Through strong whole-of-government partnerships Around one-third of the world’s annual fish catch is with our region, we will increase the resilience of ocean ecosystems from illegal, unreported or and continue to support the United Nations Convention on the Law unregulated fishing.22 of the Sea. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 41 CASE STUDY Jowave (left) and Marcellus, both commis Pacific Australia Labour Mobility (PALM) chefs, are friends and colleagues at Ayers Rock Resort. Credit: Pacific Labour Facility PALM fosters links between people, businesses, and communities, creating deeper connections and understanding between Australia and the Pacific. PALM workers make an important contribution to the Australian economy, including addressing longstanding workforce issues across key sectors in the Australian economy. PALM enhances the cultural vibrancy of regional and rural communities across Australia. We work with Remittances from offshore workers also make up a significant share of gross domestic product for many Pacific countries and all participating Timor-Leste. In a region where more than one-third of people live on less than $1,000 per year, long-term PALM workers send home an countries to average of $15,000 per person per year. maximise benefits We work with all participating countries to maximise benefits and ensure labour mobility delivers economic dividends for the region. and ensure We will deepen our focus on skills development so that PALM labour mobility delivers a ‘brain gain’— ensuring that after workers return home, they bring not only remittances but also new capabilities they can delivers economic use to support the development of their communities and nations. dividends for the PALM illustrates how strong policy coherence across different tools of statecraft can deliver benefits for both Australia and our region. region. The Australian Government works with private sector partners under the scheme to provide access to job opportunities and ensure PALM workers have a positive experience while living and working in Australia.

42 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Collective action on global challenges Global public goods give form to our shared values and benefit all nations, including Australia. We must all play our part if we are to achieve our vision for a better world — the 2030 Agenda for Sustainable Development and the SDGs. Increasing global support to address the needs of our region, including the unique vulnerabilities of Small Island Developing States, is central to our agenda. Australia partners with multilateral agencies to provide development and humanitarian assistance at scale in our region World hunger and beyond, including to tackle crises in countries where we are About 1 in 10 people not present. Working in partnership with these agencies also worldwide are suffering from hunger.23 provides a valuable platform to give voice to priorities and concerns of our region and progress international norms, standards, and agreement on critical issues such as human rights, human trafficking, and modern slavery. International financial institutions are vital for global financial stability, open rules-based trade, and sustainable development. We will work with them to address our partners’ needs, particularly around climate change, infrastructure, and debt sustainability. Global public We will support reforms that ensure these institutions can meet contemporary challenges, including demand for innovative forms of goods give form to finance and delivery of high quality, climate-resilient infrastructure our shared values that maximises local opportunities. We will continue to shape the creation of norms to optimise and benefit all technological interoperability and interconnectivity to help bridge nations, including the digital divide and ensure we can all benefit from the continued growth of the digital economy. Australia. Trade and investment can create more and better jobs, lower prices and stimulate economic growth. We will support partners to benefit from global rules-based trade — as they integrate into the multilateral trading system through the WTO, implement their free trade agreement commitments, strengthen their economies through APEC and IPEF, and increase their participation in the green and digital economies. We will build partnerships to support regional economic resilience, including through supply chains, debt sustainability and sustainable foreign investment. Our support will be transparent and demand driven, designed to improve business environments and regional economic integration. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 43 In the aftermath of cyclones Judy and Kevin (March 2023), Vanuatu Mobile Forces unload Australian aid for affected communities. Credit: Australian Government/Department of Defence

44 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y OUR COMMITMENT Addressing humanitarian needs Every year, humanitarian action saves millions of lives. However, the gap between acute need and global response capacity is widening. To build resilience, Australia will support partner governments and communities in our region to lead their own national adaptation and disaster risk reduction efforts. In doing so, we will increase investment in disaster and climate risk-informed development, all-hazards early warning systems, anticipatory action, and shock-responsive social protection systems. One in every 23 people now needs In the Indo-Pacific, we will continue to support each other before, humanitarian during and after times of disaster. We will deliver timely and assistance effective humanitarian assistance. Core to our approach will be In 2023, a record 339 million a focus on gender equality, social inclusion and locally led action, people will need humanitarian ensuring diverse participation and leadership. Our assistance will assistance and protection – a prioritise those most impacted by disasters and be environmentally significant increase from sustainable, transparent, and accountable to affected populations. 274 million people at the beginning of 2022.24 We will strengthen our mechanisms to coordinate assistance, such as with Quad and France, Australia, New Zealand (FRANZ) partners. We will also share Australia’s experience and expertise in the Pacific to improve regional disaster preparedness and response capabilities. Australia will work globally too — meeting humanitarian needs where they are most acute. Our investments will strengthen the multilateral humanitarian system to take collective action, ensuring our support is coordinated and guided by the humanitarian We will focus on principles of humanity, impartiality, independence, and neutrality, root causes and and by International Humanitarian Law. We recognise and respect the ability of the United Nations, the International Red Cross build durable and Red Crescent Movements, and civil society partners to ‘stay and deliver’ in areas affected by conflict, enabling humanitarian solutions assistance to reach people in vulnerable situations. through aligning In responding to protracted crises, Australia will provide long-term support to build resilience and focus resources on humanitarian humanitarian, need, including assisting governments and communities hosting displaced populations. Humanitarian assistance alone cannot development, prevent or resolve protracted crises — we will focus on root peacebuilding, causes and build durable solutions through aligning humanitarian, development, peacebuilding, diplomatic and security efforts. diplomatic and A humanitarian strategy will be developed to ensure we have an security efforts. adaptable, responsive, and effective framework for delivering results for affected populations to help reduce humanitarian need and build resilience. This will complement our efforts across all of Australia’s development investments to reduce disaster and climate risk. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 45 Empowering girls and young women through education in Nepal. Credit: Caritas Australia/Richard Wainwright CHAPTER 5 A development program that makes a real difference

46 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Australia will deliver a high-quality, effective development program that responds to partner needs by fostering a strong, performance‑based culture that generates robust data on performance, drives improvement in the quality and effectiveness of investments, and promotes accountability. Our performance culture will be underpinned by effective senior leadership and governance, and strengthened monitoring, evaluation, and learning approaches that use evidence to learn and adapt. A new performance and delivery framework will underpin the policy. It will drive reform and improve how we plan, design and deliver our programs; communicate our results; provide timely and transparent information on investments and performance; and deliver accountability to the Australian Parliament and public. The framework will have four main elements: • a reinvigorated approach to country and regional Development Partnership Plans that involves deep consultation with partners and sets out shared objectives, expected outcomes, and approaches to evaluation and learning • a three-tier set of performance indicators for the whole of the development program that are aligned with the SDGs, and track our regional context, what we achieve and how we work • Strategic Partnership Frameworks with multilateral organisations • investment-level monitoring and evaluation systems. Each element is designed to reinforce implementation of the policy. Performance and Delivery Framework Performance Level Policy settings Reporting assessment Whole of International Three tier indicator Development Development Policy framework DFAT Annual Report Program Annual bilateral Country and Annual reporting Development Development Regional Mid-cycle Partnership talks Partnership Plans Programs strategic review Annual Performance of Australian Multilateral Strategic Partnership Periodic multilateral Development Programs Frameworks performance assessment Cooperation Report Online data portal Investment reports Aid Programming Investments Independent evaluations Guide Impact assessments AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 47 Translating policy into action The first two elements of the new performance and delivery framework will be critical for putting the policy into practice. Reinvigorated country and regional plans We will identify First, country and regional plans will translate into action the where Australia development priorities we share with our partners. These new Development Partnership Plans will be prepared with our partner can add value to a countries, in consultation with broader stakeholders, to set our agreed Australian Government activities to be delivered through country’s national bilateral and regional programs. development Development Partnership Plans will identify where Australia can add value to a country’s national development priorities and how priorities and we work with other development actors. The duration of each plan how we work will vary, informed by the timeframes of partner governments and regional planning frameworks. Development Partnership Plans will with other consider climate risk and align bilateral programs with partners’ Nationally Determined Contributions and National Adaptation Plans. development We will undertake and publish mid-cycle reviews of implementation actors. of the Plans. This will lead to updates and improvements to the Plans in consultation with partner governments. We will also hold regular in-country dialogues with stakeholders to share information, learning for delivery and progress. Updated performance indicators Secondly, the indicator framework will reinforce implementation of the priorities of the policy. It will include indicators to track results directly attributable to Australian development efforts, organised against the four focus areas of the development policy. The policy charts shifts in how the Government will deliver the development program. The indicator framework will prescribe targets reinforcing the required shifts in our approach. Key policy commitments will directly re-shape the investments that make up Australia’s development program. All new investments over $3 million must now include a gender equality objective. From 2024–25, at least half of all new bilateral and regional investments that are valued at more than $3 million will have a climate change objective. Together, these commitments will drive meaningful change in the development program over time. Strategic partnerships for global programs Our global programs and our work with multilateral organisations will be regularly assessed to ensure partnerships are performing effectively and delivering results. Strategic Partnership Frameworks will drive outcomes expected from our partnerships with multilateral organisations. Global programs such as the Australian NGO Cooperation Program, Australian Volunteers Program, and Australia Awards will report against specific implementation frameworks and engage closely with partners on performance.

48 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y Monitoring, evaluation, and learning A student with disability from Sumba Timur Nusa Tenggara Timur, Indonesia is learning Effective monitoring, evaluation, and learning are critical to from home accompanied by her mother. Credit: INOVASI Program achieving results and ensuring our programs continue to innovate, improve, and reflect best practice. We will continue to undertake robust annual assessments of the effectiveness and efficiency of individual investments. These are an essential tool for promoting continuous improvement and ensuring we are adapting our approaches to achieve effective outcomes. We will also continue to collect disaggregated data, including by gender, We will continue disability inclusion, and other relevant aspects of social inclusion, as a critical part of our approach. Independent evaluations are to undertake completed on investments and programs to generate evidence and robust annual learning to improve implementation and inform future designs. To strengthen our approach to evaluation and learning, we will: assessments of • introduce multi-year evaluation planning and increase the the effectiveness number of sector and thematic evaluations and efficiency • pilot new approaches to monitoring and evaluation including real-time reviews to better inform project implementation and of individual post-completion impact assessments for major investments investments. • increase internal and external communication of evaluation findings, including analysis and examples of investments that have achieved outcomes and those that have underperformed. AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 49 BEQUAL is Australia’s long-running flagship education program in Laos. Credit: DFAT Enhanced accountability and transparency DFAT will enhance senior managers’ accountability for delivering an effective development program. We will appoint Senior Responsible Officers for bilateral and regional development programs. We will seek feedback on implementation of the performance and We will increase delivery framework and our performance culture through a biennial our accountability perceptions survey of partner country governments, civil society organisations and sector experts. We will use this survey to test how to Australians the rollout of the performance and delivery framework is perceived by partners, and to ensure that we continue to strengthen our and our partners reputation as an effective and valued development partner. through improved We will increase our accountability to Australians and our partners through improved transparency that makes it easier to access data transparency that and documentation in a timely way. makes it easier to A Performance of Australian Development Cooperation Report will be published annually. This report will focus on assessing the access data and implementation of the policy. It will also present key performance information for country, regional, and multilateral programs and for documentation in selected sectoral and thematic areas. a timely way. We will improve the timeliness and comprehensiveness of the information published on DFAT’s website through developing an online data portal for key data and documentation on program expenditure and investments.

50 AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y References

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4 Figures in the graphic have been drawn from the following sources. Escalating disasters: UN Office for Disaster Risk Reduction (UNDRR), Global assessment report on disaster risk reduction 2022. https://www.undrr.org/gar/gar2022-our- world-risk-gar ; Looming debt: The World Bank, International debt report 2022, https://www.worldbank.org/en/programs/ debt-statistics/idr/products ; Climate vulnerability: Intergovernmental Panel on Climate Change (IPCC), Climate change 2022: impacts, adaptation and vulnerability, Working Group II Contribution to the IPCC Sixth Assessment Report, IPCC, 2022. https://www.ipcc.ch/report/ar6/wg2/ ; Digital divide: International Telecommunications Union, Measuring digital development: facts and figures 2022, https://www.itu.int/en/ITU-D/Statistics/Pages/facts/default.aspx ; Insecure jobs: International Labour Organization, World employment and social outlook trends 2023, 16 January 2023, https://www.ilo. org/global/research/global-reports/weso/WCMS_865332/lang--en/index.htm ; Rising costs: UN Environment Programme (UNEP), Adaptation gap report 2021, 1 November 2021. https://www.unep.org/resources/adaptation-gap-report-2021 ; Unequal wages: World Economic Forum, Global gender gap report 2022, 13 July 2022. https://www.weforum.org/reports/ global-gender-gap-report-2022 ; Record displacement: UNHCR, Global trends: forced displacement in 2021. https://www. unhcr.org/media/global-trends-report-2021 ; Persistent poverty: The World Bank, Poverty and shared prosperity 2022: correcting course. https://www.worldbank.org/en/publication/poverty-and-shared-prosperity

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11 Martin Raiser, ‘South Asia’s human capital is the resilience it needs’, World Bank blogs, 3 March 2023. https://blogs. worldbank.org/voices/south-asias-human-capital-resilience-it-needs

12 UN, The sustainable development goals report 2022.

13 International Energy Agency, SDG7: Data and projections: access to electricity. https://www.iea.org/reports/sdg7-data-and- projections/access-to-electricity

14 The World Bank, Remittances grow 5% in 2022, despite global headwinds, [media release], The World Bank, 30 November 2022. https://www.worldbank.org/en/news/press-release/2022/11/30/remittances-grow-5-percent-2022

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21 World Economic Forum, The world is facing a $15 trillion infrastructure gap by 2040. Here’s how to bridge it. https://www. weforum.org/agenda/2019/04/infrastructure-gap-heres-how-to-solve-it/

22 UN, UN report: nature’s dangerous decline ‘unprecedented’; species extinction rates ‘accelerating’.

23 UN, The sustainable development goals report 2022.

24 United Nations Office for the Coordination of Humanitarian Affairs (OCHA), Global humanitarian overview 2023. https:// reliefweb.int/report/world/global-humanitarian-overview-2023-enaresfr AU STR AL I A’ S I NTERNAT IONA L DEVE LOP MENT P OLIC Y 51