AAFFAIRS NQ DATE
M4/ 150 24 October 1973
D. A. C. REVIEW OF AUSTRALIAN AID
The following is text of a communique released at
the conclusion of DAC Review of Australia on 23 October 1973:-
The Development Assistance Committee ( DAC) of the
OECD held its annual review of the assistance efforts and
a p) olicies of Australia on 23 October 1973, under the Chairmanship
V of Ambassador Edwin Martin.
The Australian delegation was headed by Mr Max
Loveday, First Assistant Secretary, Development Divisi-on,
Department of Foreign Affairs. The examining countries
were Denmark and Japan.
The Committee noted with satisfaction that net official
development assistance ( ODA) disbursements ( US Dollars 272
million in 1972) had risen as a proportion of Gross National
Product from 0.53 per cent in 1971 to 0.61 per cent in 1972.
Australia ranks fourth among DAC member countries in that
respect. The Committee welcomed the announcement that the
Australian Government would be working towards an official
aid target of 0.7 per cent of GNP by the end of the decade.
It expressed the hope that Australia's contributions to
multilateral organisations would sub, c~ tialy increase in the
future. Owing to a decline in private flows, total net
official and private flows to the developing countries decreased
to Dollars 422 million and represented 0.95 per cent of GNP
in 19,72,. after having reached the one per cent target for
the two preceding years. 2
2
In 1972, Australia extended all of its ODA in the forms
of grants and was therefore in full compliance with the DAC
reconmmendations on financial terms. There were no changes
in Australia's procurement policies or practices in 1972,
but Australia, at the DAC High Level Mleeting held o-i 18 and
19 October, agreed to extend its official financial development
assistance contributions pledged henceforth to multilateral
institutions on an untied basis.
The major part of Australia's ODA continued to be
extended to Papua TNewG, u, i nea. The Committee took note of
Australia's intention to maintain a substantial volume of
assistance to Papua New Guinea following its accession to
full internal self-government on 1 December 1973. At the
samae time the Committee emphasised that it was desirable that
other DAC members as well as international institutions
supplement Austrlia's efforts in favour of Papua New Guinea
with a view to speeding up its orderly economic and'social
development. Interest was shown by the Committee in the decision
to establish an Australian Development Assistance Agency.
i;
As from 1 December 1973, this agency, whichwill be
responsible to the Minister of Foreign Affairs, will be
entrusted with the administration of all Australia's
bilateral aid and its participation in all programns of
multilateral aid to developing countries.
The Committee expressed satisfaction at the growing
emphasis Australia intends to place on social factors and in"
particular on measures designed to alleviate unemployment
in the developing countries. It welcomed Australia's
decision to contribute to multilateral programs dealing with
population problems.