Committee’s report on New Zealand’s aid

Press, 14 November 1981, Page 14

Committee’s report on New Zealand’s aid

New Zealanders handed out about $2O a head in foreign aid in the 1980-81 financial year. With a population a little over three million New Zealand gave away $62 million.

This was an increase of nearly $7 million on the allocation of aid compared with the previous year but, because of inflation, it represented a decline in the real value of the aid of about 6 per cent. These figures are contained in the annual report of the Advisory Committee on External Aid and Development, a Government-appointed committee of 12 members set up in 1975 to offer advice and comment to the Minister of Foreign Affairs on New Zealand’s assistance to developing countries.

The committee reports that while New Zealand does not rank highly among developed countries in the amount of aid it gives as a percentage of Gross National Product, this country stands out for the way in which it gives aid free from conditions or restraints.

The committee reports that in comparison with the other 16 members of the Development Assistance Committee of the Organisation for Economic Co-operation and Development, New Zealand’s aid amounted to 0.3 per cent of this country’s G.N.P. Ten other countries among the 16 dispersed a higher amount of G.N.P. However, New Zealand's bilateral aid — about 80 per cent of its total aid — was almost 100 per cent “untried,” or free from conditions, which put this country at the top of the

Development Assistance Committee’s list. Multilateral aid from New Zealand increased slightly to 23 per cent of the total in 1980-81. The main recipients were the Pacific Forum Line, the International Development Association (the World Bank’s “soft loan” facility), and a number of other agencies including the United Nations Development Programme and several United Nations agencies devoted to refugee and disaster relief.

Within New Zealand’s bilateral aid programme the allocation to the Pacific Islands was $31,500,000, or 68 per cent of the total. The proportion of the aid which has gone to the Pacific has increased for the last five years. The committee questioned whether the small Pacific States had the same absolute need for aid as. for example, drought-stricken countries in Asia or Africa. The committee also asked whether the administrative apparatus of the Pacific Islands was able to use wisely the relatively large quantities of aid given by New Zealand and other donors.

The committee questioned whether aid to the Cook Islands should be increased beyond the $7 million given in 1979-80. Last year the allocation was $7.9 million and actual expenditure is expected to exceed that figure. Cook Islands officials' are reported to be seeking close to $9 million for 1981-82. “The committee felt that aid to this small ■ but modestly comfortable recipient should be kept in

balance with New Zealand's other commitments and the needs of other recipients. Some committee members thought the same should apply to Niue,” says the Advisory Committee’s report. The committee said the uncertain future of New Zealand’s aid to Africa was a matter for discussion throughout 1980-81. The allocation to Africa for 1979-80 was $550,000. Last year it was $730,000 and the anticipated level for 198182 is below $500,000.

The committee says no new projects were negotiated to replace, those completed or wound up and the emphasis shifted to scholarships and training awards, and to grants for particular purposes such as the $lOO,OOO and $250,000 grants to Zimbabwe, and the $200,000 grant through the United Nations for East Africa relief.

“The committee feared this would reduce New Zealand's presence on the African continent to the vanishing point just at a time when New Zealand was being criticised by black Africans for hosting a tour by a white South African sports teams,” says the report. The committee recommended that aid to Africa be held at least to the 1980-1981 level.

The committee noted that aid to the five South-East Asian States in the Association of South-East Asian Nations continued at the rate of $lO million a year whch was accepted as appropriate and in balance with New Zealand’s total aid commitment.