Dr Mark McGillvray
Chief Economist, AusAID


- Community attitudes are important in developing aid priorities.
- It makes sense to target aid spending on governance because there is a correlation between improved governance and improved per capita GDP, increased educational opportunities and lower child mortality.
- Aid has a range of objectives, which may include the desire to demonstrate good international citizenship, and to enhance Australian influence. An effective aid program will inevitably strengthen Australia’s credentials in seeking a seat on the security council of the United Nations.
- With respect to the issue of influence, the suggestion that the current role of China and Taiwan in the Pacific islands, is overplayed.
- Papua New Guinea is off-track in achieving all seven Millennium Development Goals. Investing in aid to this country - which is closely associated with Australia - is an issue that ought to be assessed partly in terms of the need to protect Australian credibility in the Asian region.