Part III

Effectiveness of Australia's assistance to the region

Despite the large amount of development assistance flowing into the region, Pacific island countries remain economically underdeveloped with many of their people in poverty. Indeed, a number of reviews, studies and conferences have contrasted the amount of assistance that Pacific island countries receive with their lack of progress in lifting economic performance and improving overall living standards.[65] For example, the United Nations Development Assistance Framework for the Pacific Subregion stated that although aid per capita exceeds that of any other region, it has 'not translated into uniform human development gains'.[66] Indeed, Forum Leaders at their August 2009 meeting stated clearly their 'deep concern that despite continued high levels of development assistance over many years, the Pacific region remains off track to achieve the Millennium Development Goals'.[67] Such observations raise questions about the effectiveness of aid to the region. In this context, the committee considers how well Australia's engagement in the region assists Pacific island countries to meet their economic challenges.

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