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ECONOMIC ASPECTS OF SUSTAINABLE DEVELOPMENT IN AUSTRALIA
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Decision-Making: Coordinating
Bodies
The Minister for Foreign Affairs is responsible for the
Australian aid program. The Parliamentary Secretary to the Minister for Foreign
Affairs, assists the Minister in these duties. They are advised by the Australian Agency for International
Development (AusAID).
AusAID consults closely with the Department of Foreign
Affairs and Trade and other Government departments (including, for example,
Treasury; Environment Australia; the Department of Agriculture, Forests and
Fisheries; the Department of Defence; the Department of Health and Aged Care;
and the Australian Centre for International Agricultural Research) for
decision-making on sustainable development.
The Australian Government is committed to policy-making
that focuses on linkages across portfolios, and recognises the value of an
integrated approach to the various strands of international
cooperation/development assistance for sustainable development. The Australian
Agency for International Development (AusAID) has primary responsibility for
co-ordination and advising the Government.
Coordination occurs through a variety of processes, including
inter-departmental committees, and ongoing interdepartmental liaison and
cooperation on issues such as Desertification and Climate Change.
International relations and cooperation are the province of the Australian Government. State/Territory Governments maintain some international networks and activities where relevant to their interests. Local governments have limited international involvement, for example, through sister city arrangements and international programs such as the global Cities for Climate Protection Program run by the International Council for Local Environmental Initiatives.
Decision-Making: Legislation
and Regulations
The Australian Parliament has appointed a Joint Standing
Committee on Treaties to review and report on all treaty actions proposed by the
Government before action is taken which binds Australia to the terms of the
treaty. Further information on the
Committee is available at web-site http://www.aph.gov.au/house/committee/jsct/index.htm
The 1997 White Paper on Australia’s Foreign and Trade
Policy, “In the National Interest” (see web-site http://www.dfat.gov.au/ini/wp.html)
outlines Australia’s overall development cooperation policy and priorities.
A major review of Australia’s aid program was also undertaken at this
time.
The review made clear that sustainable development is an
overarching principle of the aid program. Australia’s
commitment to sustainable development cooperation policy and priorities are well
documented and can be seen, for example in:
These statements and paper are available through the
website http://www.ausaid.gov.au/publications/pubs.cfm?Type=PubPolicyDocuments
Open markets remain crucial to Australia's economic
prosperity, with the World Trade Organisation (WTO) acting as the primary
vehicle for Australia to advance its interests in achieving greater market
access and secure trading conditions for exporters. As a medium-sized economy
not a member of a powerful geo-political bloc, Australia sees multilateral
cooperation and negotiation with other economies as the most effective and efficient way to promote a trade facilitating
framework which benefits all participating countries including developing
countries.
Australia also promotes an open, non-discriminatory and
multilateral trading system through regional bodies such as APEC, and through
its bilateral relationships with other nations. Australia has reduced tariffs and other trade barriers
significantly in recent decades. This
has:
Australia’s overseas aid program assists partners to
mobilise private sector investment in the promotion of sustainable development.
In order to support private sector development the aid program targets three
priority areas including:
Australia also recognises that
the transfer of technologies to developing countries for sustainable development
activities in industry, energy supply and transportation predominantly occurs
through the private sector. The Australian aid program encourages developing
countries to expand their private sector development in these areas.
For further information see http://www.ausaid.gov.au/publications/pdf/privsectordevel.pdf
The Environment Industries Focus Unit, in the Australian
Government Department of the Environment and Heritage, pursues sustainable
development by identifying and promoting Australian environment industry
capabilities, in partnership with the private sector, and promoting these
domestically and internationally. Further
information on the Unit can be found at http://www.environment.gov.au/epg/eifu.
Decision-Making: Strategies,
Policies and Plans
Regional integration
and cooperation in sustainable development including environmental protection;
The Australian Government contributes to sustainable
development in several regional areas, the Pacific, Asia, and to a lesser extent
Africa and the Middle East. Australia
assesses all aid activities to ensure that negative environmental impacts are
avoided or minimised and to maximise positive impacts.
The Pacific
Australia plays a strong role in
promoting sustainable development on a regional basis in the Pacific, where
protection of the environment and the sustainable development of natural
resources are major concerns. Australia's
support focuses on the key sectors of governance, environment, health and
education and includes major initiatives in sustainable fisheries management,
forestry, meteorological services, sea level monitoring, disaster management
services, biodiversity conservation, pollution control and pest management.
Much of Australia's support is provided through the Pacific network of
regional organisations, for example the South Pacific Regional Environment
Program (SPREP). In this way
Australia actively encourages regional cooperation among Pacific island
countries.
Asia
Australia’s Asia Regional programs seek to reduce poverty
and achieve sustainable development by tackling transboundary development
challenges and by strengthening regional cooperation and economic integration.
Responding to the East Asian economic crisis has been a major focus of
the program in recent years: this has led to a significant increase in resources
directed to economic governance and social protection issues.
A sustained response in these areas, along with programs designed to
allow regional development partners to benefit fully from trade liberalisation
are priorities for the near future.
A new phase of support for the Mekong River Commission is a
key Australian contribution to sustainable regional development.
Australian assistance particularly aims to support the Commission’s
introduction of integrated basin (i.e. land and water) planning and community
participation approaches in the Mekong Basin.
Africa and the
Middle East
The objective of Australia’s aid to Africa is to build
partnerships between Australia and selected African countries and communities to
reduce poverty and achieve sustainable development.
Preventing environmental degradation is essential in achieving this
objective. All activities are
designed and implemented so that possible negative impacts on the environment
are prevented or mitigated.
At a regional level Australia is supporting the Southern
African Wildlife College to protect biodiversity and encourage the growth of
eco-tourism by supporting the training of protected area managers in the
Southern African region.
Multilateral
cooperation and agreements related to sustainable development;
Australia funds a wide range of multilateral organizations
working on sustainable development activities including the multilateral
development banks, United Nations organisations, international health programs,
international environment programs, and Commonwealth Organisations.
Australia also has international obligations under a number
of multilateral agreements relating to sustainable development, for example the
Food Aid Convention and the Ottawa Treaty.
Australia plays an active role in a number of sustainable development
fora, including the Commission on Sustainable Development.
Australia’s strategic objective for participation in these fora is the
progression of the sustainable development agenda through action programs with
practical and achievable outcomes.
Further information on Australia's multilateral cooperation
can be found in AusAID's 1999 - 2000 Annual Report and 2000-2001 Budget
Statement.
Trade liberalisation
and globalisation;
Globalisation
remains one of the profound influences on Australian trade policy. Trade
liberalisation has underpinned Australia’s economic growth and living
standards over the last fifty years. The
Australian Government is committed to open markets and free trade, which it
pursues through the WTO, regional forums such as APEC and bilateral efforts.
To take advantage of the benefits associated with
globalisation and trade liberalisation, the Australian Government continues to
take necessary steps to reduce barriers not only for goods and services that
Australia exports but also for the goods and services that its trading partners
export. Australia’s general
tariffs on imports have been reduced significantly since the early 1970s.
With the exceptions of goods within the passenger motor vehicle and
textiles, clothing and footwear sectors, and of some cheeses, all general
tariffs applied to imports are now 5 per cent or less.
All imports from certain countries, including New Zealand, the Forum
Island countries and Papua New Guinea are subject to lower preferential tariff
rates. Such rates also apply to
particular imports from Canada and certain developing countries.
Australia is a traditional supporter of the WTO and remains
a strong advocate of a new, market access focussed round of multilateral trade
negotiations. APEC is the most
significant regional forum in which Australia participates and will remain a key
element in Australia’s trade strategies. The Government is committed to
meeting the objective of free and open trade and investment by 2010 as set out
in the Bogor Declaration.
In pursuing its globalisation or trade liberalisation
strategies, the Government takes account of the adjustment difficulties
associated with tariff reductions. Spreading
the time period over which adjustments are made, and giving advance notice of
liberalisation initiatives, gives industries and communities more time to adjust
and improve their competitiveness. These
principles have been applied to reducing protection in the PMV and TCF sectors. The Government’s microeconomic reforms have also assisted
industries to minimise adjustment costs and improve productivity.
Mobilisation of
domestic and external financial resources for development cooperation;
Australia has emphasised the importance of efficient and
effective use of resources, including domestic resources, in the interests of
development. Good governance, including economic governance, and institutional
strengthening are crucial in attracting foreign direct investment and other
private flows, an important element of external resources. Sustainability
assessments for activities supported by Australia include consideration of the
mobilisation of domestic and external financial resources for development
cooperation.
For more detail on actual processes dealing with this issue
please refer to AusGUIDE (a guide for AusAID staff, contractors and others
involved in aid delivery) available on the website http://www.ausaid.gov.au/ausguide/index.html
Transfer of
environmentally sound technology and know-how.
The Australian aid program facilitates the transfer of both
hard and soft environmentally sound technology. One of these strategies is the transfer of both hard and soft
environmentally sound technology. The
Australian overseas aid program helps partner countries to build capacity,
develop enabling environments and gain access to innovative and environmentally
sound technologies, particularly renewable energy technologies. As an example, a
key output for 1999-2000 included the training of 508 people in environmental
management in the eastern islands of Indonesia.
Further information on the transfer of environmentally sound technologies may be found in the 2000 - 2001 Budget Paper and The Australian Overseas Aid Program and the Challenge of Global Warming brochure and fact sheets. The web-site address for this latter publication is http://www.ausaid.gov.au/publications/pdf/globalwarming1997.pdf
Decision-Making: Major
Groups involvement
The Australian Government is committed to involving all
relevant groups in its decision-making processes, including providing
appropriate information, consulting, and encouraging feedback on the quality of
the aid program. This is done through a variety of consultative mechanisms
including the Aid Advisory Council (community advice to the Minister), the
Committee for Development Cooperation (an NGO consultative group), and
specialist advisory groups such as the Advisory Group on International Health,
the Gender and Development Advisory Group and the Private Sector Contractors
Group.
The Australian Government consults with representatives of
major stakeholder groups during strategic policy formulation processes related
to sustainable development. The
role of the stakeholder groups is to provide expert and/or technical advice on
particular issues. Australian
delegations to multilateral fora, such as the annual sessions of the Commission
on Sustainable Development (CSD) and the Framework Convention on Climate Change,
have regularly included representatives from major stakeholder groups.
Further information on cooperation and involvement with
NGOs is available at the NGO home page at http://www.ausaid.gov.au/publications/pubs.cfm?Type=PubNGOs
The Australian
Government actively involves major non-government groups and organisations in
international negotiations and cooperative activities at several different
levels.
Australia takes a whole
of government approach to international meetings which ensures consistency
across international negotiations and issues.
Interested groups are consulted in determining Australia's position for
international negotiations and COPs. This
consultation generally involves at least business and environment NGOs, but is
often broader than this depending on the issues involved and can involve
community members from a variety of perspectives.
Consultation with
interested parties can take the form of meetings or electronic consultation, and
can be often informed by discussion papers prepared which highlight key or
important issues. In some cases,
consultative or reference groups are established to provide ongoing advice to
the Government where an issue requires particular attention.
Membership of these groups is often very diverse and reflects the broad
concerns of community sectors. Outcomes
of international meetings are disseminated to interested stakeholders again
through meetings or electronic means. Stakeholders
have the opportunity to seek further information and make their views known on
the outcomes.
The process of
ratification of an international treaty entails extensive community consultation
and scrutiny by Federal Parliament. There is a formal process by which Federal Departments are
required to detail the extent of consultation they have undertaken and the views
of community sectors relating to the ratification or not of that particular
treaty. Stakeholders may make
representations at Departmental or Ministerial level. Further information can be found at web-site address http://www.aph.gov.au/house/committee/jsct/ppgrole.htm
The Australian Government will often consider initiating
bilateral or multilateral agreements where elements of the Australian community
consider this would serve their interests.
This is often the case where exporters and businesses would like to
increase their opportunities in other country markets, but also occurs where the
national interest is likely to be affected more broadly.
All major groups have nationally organised representative
bodies; most of these bodies/organisations cooperate with and participate in
activities/programs with allied international or national organisations.
The Australian government provides limited funding towards some of these
activities through its Grants programs.
Australia believes the private sector is critical to
achieving sustainable development, and is actively encouraging involvement of
the private sector in activities to improve its environmental performance. A
range of partnerships have been developed to achieve this. For instance, the
Australian Government has begun a program of developing voluntary agreements
with industry associations to promote eco-efficiency to their members, and to
monitor and report annually on progress in implementing eco-efficiency.
Performance indicators include water, energy and key material use per unit of
product. For further information,
see web-site address http://www.environment.gov.au/epg/environet/eecp/.
Further information on the role of the private sector in Australia’s
international cooperation and development activities can be found at the Key
Business Documents home page at http://www.ausaid.gov.au/business/publications/index.cfm
Trade liberalisation and globalisation impacts on the overall structure of the economy in a comprehensive and profound way. An array of government policies exist at federal, state and local government level to assist sectors and individuals to benefit from economic change irrespective of the drivers of change. It is difficult to actual identify the particular impacts of accelerated global economic development and change as Australia has large sectors of the economy subject to competition from external sources, and increased openness has had uneven effects even within these sectors. The Textile, Clothing and Footwear sector is perhaps noteworthy in that declining employment has been observed overall but niche areas have benefited from export growth.
Programmes and Projects
The Australian aid program supports a range of multilateral
agencies for a number of diverse activities related to sustainable development.
Among others, contributions were made to the World Bank, the Asian
Development Bank, the World Health Organisation, the Global Environment Facility
and numerous United Nations Organisations such as the World Food Program, the
United Nations Development Program, and the United Nations Development Fund for
Women.
Activities conducted by these organisations in 1999-2000
included addressing climate change issues, treating persistent health problems
such as HIV/AIDS, contributing to international relief efforts in East Timor,
and attending to the protection and development of children and women.
For 2000-2001, Australian aid funding directed to multilateral agencies
will continue to focus on a range of valuable humanitarian, technical, policy
dialogue and coordination functions. Further information on Australia's
multilateral cooperation may be found in AusAID's 1999- 2000 Annual Report
(p.54-65) and the 2000-2001 Budget Statement (p.53-65].
Australian official development assistance continues to focus on activities that reduce poverty and achieve sustainable development. In 1999-2000 Australia provided an estimated AU$1.6 billion as official development assistance. During 1999-2000 Australia provided AU$105.3 million to meet pressing demands for humanitarian and emergency assistance, responding in particular to the new challenges in East Timor.
Australia has committed AU$55 million to the multilateral
component of the enhanced Heavily Indebted Poor Countries (HIPC) Initiative.
In 1999-2000 Australia provided AU$12 million of this commitment to the
World Bank – the implementing agency for the HIPC.
Australia has also agreed to provide bilateral debt forgiveness to
countries that qualify for debt relief under the Initiative.
Australia’s bilateral aid program follows country program
strategies developed in close consultation with partner countries.
Details on specific country programs can be found in AusAID's 1999 –
2000 Annual Report (p.28-53) and the 2000-2001 Budget Statement. As a
member of the Development Assistance Committee (DAC) of the OECD, Australia
reports regularly against DAC sector codes.
Australian aid flows for 1999-2000 (as a percentage of
total aid flow) by key sector are listed below:
Health 11%
Rural Development 13%
Governance 15%
Infrastructure 15%
Education 18%
Other
28%
Further information can be found in AusAID's 1999 - 2000 Annual Report and 2000-2001 Budget Statement.
Governance is one of the five priority sectors of the
Australian aid program. Australia
sees good governance, which incorporates capacity building in the design and
implementation of economic policies, public administration, the design of
efficient tax and accounting systems, financial institutions and markets, as
well as the promotion of entrepreneurship, as an essential precondition for
sustainable development.
In the Australian aid program governance is addressed in
four sub-sectors. These include:
improving economic and financial management, strengthening public sector
management, strengthening legal systems, and fostering the development of civil
society.
Further information on governance in the Australian aid
program can be found in AusAID's 1999 - 2000 Annual Report and 2000-2001 Budget
Statement. Particular examples of
governance type projects are found on the Governance home page http://www.ausaid.gov.au/publications/keyaidpubs.cfm?Type=PubKAG
as well as on the policy paper titled Good
Governance: Guiding Principles for Implementation at web-site address http://www.ausaid.gov.au/publications/pdf/good_governance.pdf
Major bilateral capacity building programs are underway in
most of Australia’s partner countries. Regional mechanisms have also been
established in Asia, the Pacific and Africa.
Details on these capacity building programs can be found on the AusAID
publications home page at http://www.ausaid.gov.au/publications/keyaidpubs.cfm?Type=PubKAE
The Australian aid program is committed to strong support
for private sector development that addresses poverty concerns in developing
countries.
Poverty Eradication
The overall single objective of the aid program is to advance Australia’s national interest by assisting developing countries to reduce poverty and achieve sustainable development [AusAID Corporate Plan 98-00]. In order to meet this objective AusAID has developed a ‘four pillar’ poverty reduction framework based on enhanced growth; increased productivity; improved accountability and reduced vulnerability of the poor.
All programs/activities conducted under the Australian aid
program are designed to address the objective of reducing poverty.
Levels of aid support are designed maximise sustainable poverty reduction
and prioritised on the basis of country and sectoral knowledge of the underlying
causes of poverty.
Environmental
research, management, conservation, etc.;
Australia's aid program prevents and rehabilitates
environmental degradation in developing countries by ensuring that aid
activities are environmentally assessed for maximum impact and that funding for
environment is spread over a range of sectors.
In 1999-2000 Australia's aid program spent approximately
$65 million on activities with direct environmental objectives and $190 million
on activities with significant indirect environmental benefit.
This funding includes support to regional and multilateral organisations
like, for example, South Pacific Regional Environment Programme and Australian
Centre International Agricultural Research.
Activities supported with direct environmental objectives included:
Further information on the environment in the Australian
aid program can be found in AusAID's1999 – 2000 Annual Report (p.26-27, 56-57)
and the 2000-2001 Budget Statement (p.5, 56-57).
Education for
sustainable development;
Basic
education for all citizens is essential for sustained social, political and
economic development. Education helps reduce poverty in three ways:
The Australian aid program introduced an education and
training policy in August 1996. The
aid program aims to increase access to, and the quality of, education and
training for the most vulnerable in the developing countries of our region.
Basic education and technical and vocational education are priorities, with
selective assistance also given for distance and higher education and
institutional strengthening.
There
has been a fivefold increase in funding for basic education and for
technical-vocational interventions and a threefold increase in assistance for
institutional strengthening since 1996. Direct expenditure on education and
training was an estimated $295 million for 246 projects in 1999-2000. A further
$265 million was devoted to projects in other sectors with an education
component.
Further information on education in the Australian aid
program can be found in AusAID's 1999 – 2000 Annual Report (p.22) and the
2000-2001 Budget Statement (p.13-14).
Others (Please specify.)
Australia regards the health sector as an important
component in sustainable development. Improved
health standards lead to economic development and poverty reduction.
In 2000-01 Australia will provide an estimated $170 million of direct
health assistance to developing countries.
The program targets those groups most at risk and focuses on improving
basic health care and services through simple, cost effective methods of
prevention and treatment.
The Australian System
of Tariff Preferences (ASTP) provides favourable market access to Least
Developed Countries (LDCs). This provides duty free access to 93.2% of imports
from LDCs, and a 5% tariff preference over the MFN rate on remaining products.
Australia also provides duty free access for exports from Forum Island
Countries.
Status
The following table illustrates the changing trends in
Australia’s external aid financial expenditure.
|
Table:
Aid expenditure by type and financial year1 ($A'000) |
|
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|||
|
|
|
|
|
|
|
|
|
|
Cash
Expenditure |
|
Expenses |
|
%
change from |
|
|
|
1996-97 |
1997-98 |
1998-99 |
1999-2000 |
|
96-97
to 99-00 |
|
Bilateral
ODA |
1,070,602
|
1,048,116
|
1,130,853
|
1,381,103
|
|
29.00 |
|
Multilateral
ODA |
361,443
|
394,960
|
397,752
|
367,596
|
|
1.70 |
|
Humanitarian
& Emergency2 |
81,482
|
104,969
|
124,845
|
105,263
|
|
29.19 |
|
|
|
|
|
|
|
|
|
1
Break in series in 1999-2000 due to the introduction of accrual budgeting |
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|
2
Includes bilateral and multilateral ODA for emergency and refugee relief |
|
|
||||
Other statistical information regarding percentage growth in the financial resources for development can be found in AusAID's budget papers and annual reports at http://www.ausaid.gov.au/publications/default.cfm and in the Statistical Annex to AusAID’s 1999 - 2000 Budget Statement at http://www.ausaid.gov.au/publications/pdf/budget9900/Budget99_StatAnnex.pdf
Challenges
Australia maintains a broad range of relationships at every
level for the purpose of promoting sustainable development.
These include regional forums (such as Asia Pacific Economic Cooperation
(APEC), ASEAN and the South Pacific Forum); bilateral relations with partner
developing countries; and international networks within civil society, business
and academia.
The Australian aid program focus is on the key sectors of
health, education, agriculture and rural development, infrastructure, and
governance. There are a number of challenges in building effective
partnerships for promoting cooperation in sustainable development. Australia focuses on the priority needs of partner
governments, maintaining dialogue that leads to enhanced shared objectives.
Australia recognises while trade liberalisation benefits many individuals and economies as a whole, some specific groups can be disadvantaged as trade barriers are removed on protected industries. Firms can close as others open, and workers can be displaced. As trade liberalisation can pose adjustment difficulties for affected workers and the communities in which they live, dealing effectively with structural adjustment issues remains a challenge for Governments.
Capacity-building, Education, Training
and Awareness-raising
Promoting
public awareness on the need for sustainable development is a key aspect of the
Australian aid program. AusAID
undertakes research into community attitudes towards overseas aid.
The results inform public affairs planning, both for AusAID and
Australian NGOs. AusAID also
assists with training of teachers in development education and in the
development of curriculum materials.
Information about
Australia’s aid program is made available to the public, multilateral donors
and Australian and international government and non-government organisations via
the Internet and a range of publications. Further
information on the promotion of public awareness of the Australian aid is on the
general AusAID Internet site http://www.ausaid.gov.au
The Australian Government engages in a range of educational
and training programs targeting experts and professionals in international
relations. This includes diplomatic
training programs, trade negotiation courses, funding and professional support
for international seminars, and engagement with professional international
organisations like the Centre for Democratic Institutions.
Further information on education in the Australian aid program can be found in
AusAID's 1999 – 2000 Annual Report (p.22) and the 2000-2001 Budget Statement
(p.13-14).
Priority setting, project identification and formulation,
as well as project administration and management are all developed in
consultation with partner countries, and as such forge strong international
cooperation between Australia as the donor country and the respective partner
country.
Additional information on the way in which Australia, through its overseas aid program, strengthens international cooperation in terms of priority setting, project identification and formulation, as well as project administration and management is referred to in AusGUIDE (http://www.ausaid.gov.au/ausguide/index.html).
Information
Australia’s Overseas Aid Program Statistical Summary', commonly known as the Green Book, and the 'Australia’s Overseas Aid Program Official Expenditure', the Blue Book, are published each year and both provide detailed information on aid expenditure. The Blue Book provides a listing of all Australian Government aid projects, classified by recipient country, region and sector. The Green Book provides a comprehensive summary of Australian government aid expenditure.
These reports, available via AusAID’s web-site at http://www.ausaid.gov.au/publications/pubs.cfm?Type=PubStatisticalData,
provide governments, academics, researchers and the broader community access to
detailed statistical information on Australia’s aid program.
These publications are supported by the bi-annual ‘Snapshot of
Training’, which provides information on AusAID’s students sponsorship
activities.
Additionally, a report and budget paper outlining
Australia’s bilateral and global cooperation are produced each year.
Both of these documents are presented annually to the Australian
Parliament. For both these
documents see website address http://www.ausaid.gov.au/about/annrep.cfm
and http://www.ausaid.gov.au/about/budget.cfm.
See also web-site address http://www.ausaid.gov.au/publications/pubs.cfm?Type=PubPolicyDocuments
for a listing of key AusAID Policy Documents
Australia operates an open and accessible system in the dissemination of information. Key public documents such as the Government White Papers are available to the public on request and are widely disseminated to academic research, international bodies and other interested parties. Publications of newsletters, bulletins regarding Australia’s commitment to sustainable development, along with other information are available through websites. Through active public relations activities material and information are sent to schools, higher education and research institutions, media outlets and non- government organizations at both the national and international level. A wide array of focus groups and interests are invited and welcomed at open forums.
Research and Technologies
Australia is well endowed with technical know-how and
advanced technological systems. The
Australia aid program aims to utilise these resources to assist in sustainable
development activities in partner countries.
For example, Australian technology on renewable energy and forestry and
land management practices has been adapted in several areas of the Asia Pacific
region. For further information see
website http://www.ausaid.gov.au/publications/pdf/global
warming1997.pdf Australia's
aid program also assists in strengthening the economies, governments and social
institutions in developing countries, which improves general capacity to address
sustainable development. By
supporting measures to improve the enabling environment within developing
countries Australia also helps encourage private sector technology transfer
initiatives.
The Australian Government recognises that private sector
involvement is critical in ensuring the incorporation of sustainable development
principles into economic development plans.
The Government seeks to work in cooperation with industry to develop
policies and programs tailored to the needs of specific industry groups that
will improve the environmental performance of industry while contributing to
continued economic growth in Australia and around the world.
To this end, the Government’s commitment to working with
the private sector extends to Australia’s international activities.
The Government has a range of initiatives which facilitate the
participation of the environment management and environment services industries
in the international marketplace.
Under the Kyoto
Protocol, there is provision for countries to undertake collaborative projects
to reduce greenhouse gas emissions. In advance of the Clean Development
Mechanism (CDM) and Joint Implementation (JI) becoming operational, several
countries including Australia are participating in the Activities Implemented
Jointly (AIJ) pilot phase. The purpose of the CDM is to assist host
countries in achieving sustainable development and collaborative projects accomplish this through technology transfer and
capacity building. Through the International Greenhouse Partnerships (IGP)
Program, the Australian Government assists private and public entities wishing
to undertake overseas GHG emission abatement projects under AIJ / CDM /
JI by seeking host country endorsement of the project and providing some
funding for the transaction costs associated with meeting AIJ / CDM / JI
criteria.
The APEC Energy Working
Group (EWG) has established an Energy Business Network (EBN). The EBN allows
dialogue between Senior Officials and the Private Sector at the CEO level.
Issues discussed include investment in infrastructure, market reform, capacity
building, introduction of new plant with advanced technologies, and the role new
and renewable technologies can play in supplying power to remote areas.
While keen to integrate the adoption of environmentally
sound technologies in the activities of the Australian business sector abroad,
the Government is committed to upholding both the letter and the spirit of all
relevant international trade agreements. Therefore
the facilitation and promotion activities of the Australian Government do not
extend to offering export subsidies or production bounties for the environment
industries.
A recent, prominent example of public/private sector
cooperation in the environment field was the variety of environmental
initiatives undertaken as part of the Sydney Olympic Games.
These involved the private sector in a range of measures to minimise the
environmental impact of the Games. The
Government arranged for a range of business promotion activities to run
concurrently with the Olympics, in order to encourage the uptake of
environmentally sustainable technologies around the world.
Following on from the success of the Games, the Environment Industries
Focus Unit, within the Commonwealth Department of Environment and Heritage,
continues to work with the private sector to promote Australian environment
technologies internationally (see web-site address http://www.environment.gov.au/epg/eifu).
The International Greenhouse Partnerships Office, as the
Designated National Authority under the UNFCCC, facilitates collaborative
emission reduction projects overseas. To ensure that the emission reductions are
real and additional to that which would have occurred without the project, the
IGP Office assesses the project design including the technology involved prior
to its seeking endorsement of the host country for the project to proceed as AIJ
/ JI / CDM. Additionally the project, once endorsed by the host country, is
reported to the UNFCCC secretariat. This report details the host country, the
technology involved and the capacity building aspects associated with the
project.
The Australian
Government manages the APEC Energy Working Group/Secretariat.
The EWG has a number of Expert Groups that encourage international market
penetration of new and renewable energy technologies.
Financing
Australia will provide an estimated $1.6 billion in
official development assistance in 2000-01. This is a nearly $100 million
increase over 1999-2000 budget estimate, an increase of 4 per cent in real
terms, and represents an ODA/GNP ratio of 0.25 per cent, which is above the
latest average of all donors (1999) of 0.24 per cent.
Australia has demonstrated its willingness to respond
generously and quickly to emerging needs. In
1999-2000, Australia provided additional funding for East Timor, the Heavily
Indebted Poor Countries Initiative, and East Timorese and Kosovar evacuees in
Australia. This resulted in an
expected ODA outcome of $1.65 billion, with an ODA/GNP ratio of 0.27 per cent.
Australia endeavours to maintain our aid at the highest level, consistent with the needs of partner countries, our own economic circumstances and our capacity to assist. Priority areas for Australian aid are Papua New Guinea, the Pacific, and East Asia, with selective concentration on development needs in South Asia, Africa and the Middle East. Statistics on official development assistance (ODA) and some other aid flows to key bilateral partners are available in the 2000-01 Australia’s Overseas Aid Program Budget Statement through the website http://www.ausaid.gov.au/publications/pubs.cfm?Type=PubPolicyDocuments
Promoting environmental sustainability is a key objective of Australia'soverseas aid programme. In 1998-99 the aid programme spent A$51 million on activities directly targeting environmental issues, focusing on environmental policy and management, water supply and sanitation, natural resource management, sustainable agriculture, rural and urban development, climate change and renewable energy. An additional A$88 million was spent on activities in the agriculture, forestry, fisheries and water supply & sanitation sectors with an indirect but significant environmental component. Major ongoing projects include: capacity building assistance for BAPEDAL, the Indonesian environment agency (A$23.3 million), the South Pacific Sea Level and Climate Monitoring Project (A$14.5m), assistance for the Solomon Islands Water Authority (A$13.8m), the Philippine Municipal Solar Infrastructure Project (A$13.7m), and an Agroforestry/Salinity Control project in Pakistan (A$11.5m).
Cooperation
Australia is a signatory to a large number of international
conventions and treaties related to environment and sustainable development,
including, but not restricted to, the Convention on Biological Diversity,
Framework Convention on Climate Change, Convention to Combat Desertification,
Basel Convention, and Vienna Convention. Australia's
status in relation to each of these is available on the web-site of the relevant
treaty.
The Australia New Zealand Closer Economic Relations Trade
Agreement (known as ANZERTA or the CER Agreement) is the main instrument
governing economic relations between the two countries.
It entered into force in 1983 and its central provision is the creation
of a Free Trade Area consisting of Australia and New Zealand.
The CER Agreement is one of the most comprehensive
bilateral free trade agreements in existence.
Whilst the CER does not contain any specific provisions on environmental
protection and sustainable development, Australia and New Zealand cooperate
closely in this field bilaterally and at the multilateral level.
Preservation of a favourable regional environment (on land, in the
atmosphere, in the oceans and with regard to plant and animal life) is
recognised as important to the economic and trading future of both countries,
including with regard to fisheries, as well as their social well being.
Recognising the regional and global dimensions of LA21, the Federal Government has produced a new Local Agenda 21 manual with a focus on Asia-Pacific Economic Cooperation economies. The new manual is called: Localising Agenda 21: A Guide to Sustainable Development for the APEC region and is available on-line at: http://www.environment.gov.au/psg/igu/localagenda21/index.html. The manual contains case studies from Australia, Malaysia and the Philippines. Australia would hope to build on the case studies with other APEC partners.
As part of the Asia-Pacific region’s preparations for CSD9, a High Level Regional Meeting (which included a Ministerial policy dialogue) was convened in Bali, Indonesia from 21-24 November 2000. The theme of the regional meeting was Energy for Sustainable Development with the focus on securing adequate energy services for the region along with sound environmental performance in keeping with ESD principles. In conjunction with the High Level Meeting, a regional business forum and a regional NGO forum were also held and the outcomes of these forums were presented to Ministers at the high-level policy dialogue. Australia and Indonesia co-sponsored the Regional Business Forum, which was attended by prominent, senior business executives with long-standing commitment to the region. The Ministers issued the Bali Declaration on Asia Pacific Perspectives on Energy and Sustainable Development.
Sustainable development is at the forefront of the objective of the Australian aid program and this gives the opportunity for the Australian Agency for International Development (AusAID) to support a variety of research and professional networking activities. AusAID operates an International Seminar Support Scheme and also initiates relevant studies through the Research Development Program. In addition there is a close working relationship between the Australian Government and higher education institutions linked to sustainable development, for example the National Centre for Development Studies at the Australian National University.
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This information was provided by the Government of Australia to the 5th, 6th, 8th, and 9th Sessions of the United Nations Commission on Sustainable Development. Last Update: April 2001.
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Decision-Making: Coordinating Bodies
The Department of Foreign Affairs and Trade, especially the Environment Branch, and Environment Australia are responsible nationally for the issues under this Part. Australia'sNational Strategy for Ecologically Sustainable Development (NSESD) acknowledges the national and international dimensions of sustainable development, particularly the important nexus between international trade and its impact on the environment.
The objective of the Agriculture and
Resource Management Council of Australia and New Zealand (ARMCANZ) is to develop
integrated and sustainable agriculture, land and water management policies, strategies and
practices for the benefit of the community. ARMCANZ was formed after the amalgamation of
the Australian Water Resources Council, the Australian Soil Conservation Council and the
Agricultural Council of Australia and New Zealand.
Decision-Making: Legislation
and Regulations
At the national level, the NSESD calls for the provision of a policy framework, which supports the efficient and environmentally responsible development of the nation'sresources. At the international level, the NSESD calls for the full incorporation of environmental costs associated with production and use for maximising the ecologically sustainable development benefit of trade liberalisation.
A wide range of institutional mechanisms exists in Australia to identify environmental problems, which may be related to economic activity, including trade. These mechanisms include comprehensive environmental assessment processes at the State and Federal Government levels, public environmental policies and strategies by governments, formal consultation processes with interest groups by governments, parliamentary procedures including parliamentary inquires, Freedom of Information Acts, and a free press. These institutions ensure a high level of public debate and knowledge about both environmental and trade issues, and their interrelationship.
In particular, the Commonwealth Government has promoted market based or economic instruments to assist environmental management, for instance in the areas of air, water and land degradation. These instruments often provide least cost solutions to environmental problems, provide greater flexibility, encourage innovation and have often improved environmental outcomes. The use of such instruments in combination with appropriate regulatory measures has helped to ensure consistency between environment and economic growth policy objectives.
Decision-Making: Strategies,
Policies and Plans
Australia's trade policies are consistent
with sustainable development. The Foreign and Trade Policy White Paper, In the National
Interest, makes clear the Government works for an outcome which makes trade and
environment policies mutually supporting and which prevents environmental objectives from
supporting protectionism (para. 115).
Domestically, the Commonwealth Government is committed to microeconomic reform in order to enhance Australia'sinternational competitiveness and to raise living standards and, through improved allocative efficiency, a more sustainable pattern of resource use. The unilateral tariff reductions of recent years have seen the nominal rate of assistance to both the manufacturing and commodities sector substantially reduced.
In the food sector the Commonwealth
Government'sSupermarket to Asia Strategy is bringing together government and industry
leaders to work on further improving the competitiveness of Australia'sfresh and processed
food exports to Asia. The implementation of the Strategy will be overseen by the Prime
Minister'sSupermarket to Asia Council. The Council comprises the Prime Minister and four
other senior Government Ministers, and leaders from the farming, food processing,
packaging, transport, research, trade union and retailing sectors. Initially, the Council
is concentrating on five key issues: quality and sustainability; business competitiveness
and productivity; trade and market development; communication; and transport and
logistics. The Supermarket to Asia work will complement the Business Plan for Australian
Agriculture, which the Government is developing, together with industry, as an outcome of
the National Rural Finance Summit held in July 1996.
Decision-Making: Major
Groups involvement
An important consideration for Australia in developing its policies on trade/economic and environment interaction is consultation with non-government organisations (NGOs). A number of fora exist for this, involving broad NGO representation and involvement of officials and relevant Ministers. Often these bodies examine these issues in an integrated way. A good example was a one-off consultation prior to the WTO High-Level Symposia on Trade and Environment and Trade and Development. The consultation allowed NGOs to put views on, and discuss, the interaction of the environment with international trade policy, economic, investment, labour and human rights factors. The broad impact of change on developing countries and the desire for trade liberalisation, emerged as key concerns for different coalitions of NGOs.
Programmes and Projects
No information is
available
Status
Since the mid 1980s, Australia's exports (and imports) have risen from around 15 per cent of GDP to around 20 per cent. Much of this increase can be explained by lower tariff barriers and other economic reforms which have made many sectors of the economy more flexible and able to compete more effectively in export markets.
The reforms, along with technological change, have led to fundamental changes in the way Australians do business. The economy has become more productive and outward looking, thanks to more efficient use of resources and greater opportunities to create wealth through trade. The industrial base is stronger, with manufacturing and services products more competitive in world markets.
The increased competitiveness and strength of the industrial base has flowed through to significant increases in the importance of manufacturing and services exports. Since 1988-89, manufactured exports have risen from less than 20 per cent of total exports to 25 per cent in 1998-99, with elaborately transformed manufactures rising from 10.5 per cent to 17.5 per cent of total exports. In the same period, services exports have risen from around 20 per cent to over 23 per cent of total exports. Within services, tourism has performed especially strongly, rising from 11 per cent to nearly 16 per cent of total exports.
The reforms have also put more money in consumers' pockets and given them greater access to affordable, high quality products. Over the past decade, reductions in tariffs and barriers to trade have lifted the income of the average Australian family by over A$1,000 per year. Motor vehicles cost around 25 per cent less and clothing the average family costs around A$300 less because of lower tariffs.
Challenges
As in other countries, economic activity in Australia causes environmental problems, and export-induced increases in production are an important part of economic activity ? in Australia about 20% of GDP is exported. In a broad sense then, as in other countries, export-induced increases in production have contributed to environmental problems, especially historically. However, it is often hard in the modern economy to disentangle what is export-induced economic activity. More importantly, there are comprehensive environmental policies, programs and practices at the State, Territory and Commonwealth government levels in Australia, which are addressing environmental problems, and these measures make no distinction in administration as to whether the source of the environmental problem is export-induced or other forms of economic activity.
Like other countries, Australia is concerned with possible loss of national competitiveness, including in relation to environmental standards. However, it is debatable whether and in what circumstances lower environmental standards would actually contribute to higher national competitiveness. More importantly there are very strong domestic pressures within Australia on all governments to maintain high environmental standards. In these contexts, therefore, it could not be said that legislation or other environmental regulatory regimes have clearly been weakened simply in response to trade pressures.
Capacity-building, Education, Training
and Awareness-raising
Australia recognises that policy reform
and cooperation between developing countries and international organisations and donors is
essential to address the structural weaknesses which continue to be so important in
hampering the fuller participation of many developing countries in the trading system. The
importance of capacity building has been recognised as an integral part of the World Trade
Organisation's(WTO) work.
Information
Australia ensures that environmental sustainability is maximised in all its aid activities by integrating environmental monitoring and assessment mechanisms into their design and implementation. Australian domestic environmental protection legislation applies to all overseas aid activities through the application of the Commonwealth Environment Protection (Impact of Proposals) Act 1974 and AusAID'sEnvironmental Assessment Guidelines. The Australian aid programme also draws upon the sector guidelines in the World Bank'sEnvironmental Assessment Sourcebook, and conducts evaluations and reviews of its environmental projects. During 1999 AusAID will complete a comprehensive review of its environmental systems. This will help maintain the quality of the aid program'senvironmental activities.
While designation enables the Commonwealth environment authorities to undertake their own examination to determine the appropriate level of environment assessment and management, in practice the assessment is usually carried out by State environment authorities with the Commonwealth Government maintaining an advisory role.
More detail on Australia'sreporting on issues related to trade, investment and economic growth can be found on the Internet sites of the three major government agencies who deal with such issues: the Department of Foreign Affairs and Trade (http://www.dfat.gov.au), the Department of the Treasury ( http://www.treasury.gov.au), and the Australian Agency for International Development (AusAID) ( http://www.ausaid.gov.au). Other useful information may also be found on the websites of the Department of Agriculture, Forestry and Fisheries and its agencies ( http://www.affa.gov.au; http://www.abare.gov.au; http://www.brs.gov.au ).
Research and Technologies
There has been a strong shift in the distribution of greenhouse gas emissions arising from the manufacture of goods produced to satisfy the growing consumption in major world markets. For example, the Department of Foreign Affairs and Trade estimates that Australia's greenhouse emissions in 1990 were higher than they otherwise would have been because of Australia's particular economic structure and trade patterns, due mainly to its strong comparative advantage in energy intensive industries. Many other countries - including the large OECD economies and many of our neighbouring trading partners in East Asia - have lower emissions as a result of this international trade.
The Commonwealth Government is also
supporting development of an emissions permits trading mechanism to abate greenhouse gas
emissions as part of its response to the Kyoto Protocol. It is promoting the development
of emissions trading mechanisms in Australia and abroad as an important way of avoiding
inequitable distribution of the economic impacts of climate change and to promote
innovation to meet the challenges posed by climate change.
No information is available
Cooperation
Australia is involved in a variety of international policy activities related to interaction between economic and environment factors. The overarching goal being to achieve sustainable development on a global scale through mutually supporting reform. Much of this work goes on within key international organisations including the Commission on Sustainable Development (CSD), Organisation for Economic Co-operation and Development (OECD), World Trade Organisation (WTO), Asia-Pacific Economic Cooperation (APEC), United Nations Environment Programme (UNEP), Economic and Social Conference (ECOSOC) and United Nations Conference on Trade and Development (UNCTAD). Other government activities including aid programs and co-operative programs with Australian based companies which have international operations, also reflect this work and policy making. The particular focus for Australia has been the advocacy of win-win-win reforms on trade and environment. Trade liberalisation is the focus of this, which is particularly relevant to developing countries given the importance of commodity sectors in many of these countries. Another focus for Australia has been policy development and implementation on freshwater.
Australia has actively pursued a program of trade liberalisation, both unilaterally, and through international fora such as the WTO and APEC. Australia has also pursued the integration of trade and environment issues in the CSD and other international fora including the WTO, APEC, OECD, UNEP, ECOSOC and UNCTAD. Activities have focused on the commodity trade sector, where Australia has argued for the removal of trade restrictive and distorting policies which lead directly to the over-exploitation and degradation of the environment and lower export income returns for commodity exporting developing countries. In the WTO Committee on Trade and Environment, Australia supported the view that, if the multilateral trading system is to deliver its promise of improvements in social welfare, then trade reform will have to be supported by appropriate environmental policies. Australia sees no conflict between WTO measures and environmental policies. Australia notes, however, that conditions facing southern hemisphere countries are frequently different from those faced by northern hemisphere countries.
A good example of Australia'sinvolvement in integrated international policy-making is the APEC FEEEP Project (Impact of Expanding Population and Economic Growth on Food, Energy and the Environment) which aims at long term integrated approaches to sustainable development in these fundamental areas. Australia has been particularly involved in the food element. Australia also continues to support international institutions, such as the Asian Development Bank, World Bank, United Nations Development Programme and the Global Environment Facility, which fund a significant number of environmental activities.
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This information was provided by the Government of Australia to the 5th, 6th, and 8th Sessions of the United Nations Commission on Sustainable Development. Last Update: December 1999.
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Decision-Making: Coordinating Bodies
Decision-making at all levels of
government has implications for sustainable consumption and production. Decisions are made
on a whole of government basis as well as on an individual jurisdictional basis.
The whole of government approach is facilitated by organisations such as ministerial councils including the Council of Australian Governments (COAG), the Australian and New Zealand Environment and Conservation Council (ANZECC), the Agricultural and Resource Management Council of Australia and New Zealand (ARMCANZ). COAG's objectives include consultation on major whole-of-government issues arising from Ministerial Council deliberations and on major initiatives of one government which impact on other governments. ANZECC, made up of the environment Ministers from New Zealand and Australia's Federal and State/Territory governments, is the intergovernmental coordination body on a range of environmental issues.
Decision-Making: Legislation
and Regulations
These cooperative organisations are supported by the Intergovernment Agreement on the Environment (IGAE) and the National Strategy for Ecologically Sustainable Development (NSESD). The IGAE sets out the roles for, and means of interaction between, the different levels of government on a range of matters. (Summary of IGAE, Text of IGAE The NSESD sets out the framework under which governments will cooperatively