Comments

Hi Terence, Thanks for this-very interesting and possibly the only option to make aid cuts with the time constraints. I am with Joel. I am against a holistic approach where we look at percentages and calculations as opposed to effectiveness of aid and impact caused by the aid. This makes me reflect on whether aid is given as a means to an end; or as an end in itself (is it meant to impact positively on development) Will be interesting to see how this plays out.

Thanks Joel, I agree that there are much better ways of cutting an aid programme. Just not in 6 months. Similarly, while I think decisions might be made to stop working in a particular sector or cut spending to a particular multi-lat, I doubt any of this can be done as quickly as country-based cuts. To be clear on the main point of my post: I don't think there's any good way of cutting an aid programme by 20% in 6 months. Nor any good cause for it. All I can offer is what I think is the least worst way forwards now. Terence

Hi Terence, Thanks for this. Interesting perspective and good use of data. Even though you provide sufficient caveats, I worry that such calculations and numeric contortions hide the more fundamental questions that DFAT needs to be asking as it looks for cuts: - which programs are working and which are not? - what can be achieved in a $4b aid program? - do the cuts require a new strategy rather than just variations on the level of cuts (10% or 20% or 30%)? I guess I am arguing that rather than having calculations drive the cuts, DFAT needs to re-develop its strategy and have that drive the cuts. Of course I doubt this will happen partly due to the tight timeline (cuts announced in December and first round of budget proposals needed in February) and partly due to the fact that redesigning the aid strategy less than a year after the launch of the new strategy in June 2014 would be an admission of complete failure. I would prefer some bold (and likely unpopular) decisions by DFAT - pulling out of certain countries; cutting all work in certain sectors; ending contributions to certain multilateral agencies - that are based on a revised strategy of what the aid program can and should achieve. Joel

GDG is also an umbrella entity from memory that provides tax-deductibility to smaller NGOs? If so - may reflect a proliferation in activity at that level.

Global Development Group is a surprising one? Not a major presence on the web or in media, little interaction with peer agencies in the sector, no obvious dedicated constituency, no clear point of differentiation from other aid NGOs in their approach - and yet shooting up the fundraising charts, from a low base. Is it because they're the only aid NGO in Queensland?

Hi Jasmina, That's something we are interested in looking into. I haven't stumbled across anything yet but would be very grateful if anyone could steer us in the right direction! Regards, Jonathan

Hi Phil, Thanks for your comment. Red Cross is included in the analysis, but we had to make some special calculations with their funding to isolate funding used for development expenditure. While they are a huge NGO, the lion's share of their expenditure is actually on domestic causes, not international development. WWF sits in the same camp, and we also excluded it for the same reason: once you isolate its development expenditure it falls outside the top 15. Cheers, Jonathan

I am curious why Red Cross was not included in this assessment? I realise that they are not really an NGO but an ancilliary to goverment, but would have thought that they fitted into analysis of this nature, and would sit in the top 15, even top 5?

It is also worth noting that a collapse in the value of the Kina is also not a great outcome. Inevitable, perhaps, but it will result in high inflation and increased poverty and directly impact the poorest in society. Those with a long memory will recall the harsh effects of the devaluations in the 90's at the time of the former structural adjustment programs. Back then there was a bit of a cushion in terms of the aid program but this time around even that will be cut back. Tough decisions indeed, and not just for the Government.

This is very interesting article - thanks! Is there any similar article/data set about the distribution of private donations in USA and/or Europe?

Hi, ive been in tertiary level teaching for more than 2 decades now, in fact I've been the dean of the College of Education in one of the universities here in the Philippines, particularly in Central Luzon (Region III). Now I am one of the campus directors in the university responsible to the operations of the campus at all aspects. I just would like to share my experiences and talents to your school just in case you are interested. I am a graduate school professor who has presented researches international. I am willing to help you rebuild your university if you would trust me to help you. Thank you

Good topic Ashlee, thanks. I liked the big-picture explanation of the role of aid in relations between Indonesia and Australia, in the radio interview with Robin Davies a couple of days ago on 2UE. Here’s <a href="http://www.2ue.com.au/news/budget-cuts-calls-to-end-our-aid-to-indonesia-20150225-13obor.html" rel="nofollow">the linkage</a> if others missed it.