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PERFORMANCE OF AUSTRALIAN AID 2016-17

Performance of Australian Aid 2016-17

May 2018

ISSN 2204-6593 (Print)

ISSN 2204-9649 (Online)

ISBN 978-1-74322-439-7 (Book softcover)

ISBN 978-1-74322-440-3 (PDF format)

ISBN 978-1-74322-441-0 (Word format)

Creative Commons

With the exception of the Commonwealth Coat of Arms and where otherwise noted all

material presented in this document is provided under a Creative Commons Attribution 3.0

Australia (creativecommons.org/licenses/by/3.0/au/) licence. The details of the relevant

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The document should be attributed as: Commonwealth of Australia, DFAT, Performance of

Australian Aid 2016-17.

ContactInquiries about this document should be directed to:

Department of Foreign Affairs and Trade

Public Diplomacy Branch

RG Casey Building

John McEwen Crescent

Barton ACT 0221 Australia

+61 2 6261 1111 (Phone)

+61 2 6261 3111 (Fax)

Published by the Department of Foreign Affairs and Trade, 2018

ii Performance of Australian Aid 2016–17

Contents

Introduction 1Outline of this report 2

Approach to assessing performance in the aid program 2

Transparency 5

Chapter 1 Performance against strategic targets 6

Chapter 2 Country and regional program performance 24

Pacific 25

South-East and East Asia 32

South and West Asia, Africa, the Middle East and Other Regions 39

Chapter 3 Global program performance 47Multilateral Performance Assessments 48

Australian Non-Government Organisation Cooperation Program 51

Chapter 4 Sector and thematic performance 52Infrastructure, trade facilitation and international competitiveness 54

Agriculture,fisheriesandwater 55

Effectivegovernance:policies,institutionsandfunctioningeconomies 56

EducationandHealth 60

Buildingresilience:humanitarianassistance,disasterriskreductionandsocialprotection 65

Disability-inclusiveDevelopment 66

iiiPerformance of Australian Aid 2016–17

iv Performance of Australian Aid 2016–17

Annex A: Official Development Assistance delivered by other government agencies 67

TheTreasury 67

AustralianCentreforInternationalAgriculturalResearch 67

AustralianFederalPolice 68

DepartmentofHealth 68

DepartmentofJobsandSmallBusiness 69

DepartmentofAgricultureandWaterResources 69

DepartmentofImmigrationandBorderProtection 69

Attorney-General’sDepartment 70

DepartmentofCommunicationsandtheArts 70

Annex B: Assessment by Independent Evaluation Committee and the Office of Development Effectiveness 71

ForewordbyJimAdams,ChairofDFAT’sIndependentEvaluationCommittee 71

StatementbytheOfficeofDevelopmentEffectiveness 73

List of acronyms and abbreviations 76

1Performance of Australian Aid 2016–17

IntroductionAspartoftheperformanceframeworkfortheAustralianaidprogram,Making Performance Count1, the Government committed to publish an annual Performance of Australian Aid report. This is the fourth annualreportanditsummarisestheperformanceoftheAustralianaidprogramin2016-17.

The Government’s aid policy, Australian aid: promoting prosperity, reducing poverty, enhancing stability2, affirmsthepurposeoftheaidprogramas‘promotingAustralia’snationalinterestsbycontributingtosustainableeconomicgrowthandpovertyreduction’.Toachievethis,theaidprogramfocusesondrivingprivatesectorandhumandevelopmentintheIndo-Pacificregionthroughinvestmentsinsixpriorityareas:

• Infrastructure, trade facilitation and international competitiveness;

• Agriculture,fisheriesandwater;

• Effectivegovernance:policies,institutionsandfunctioningeconomies;

• Education and health;

• Buildingresilience:humanitarianassistance,disasterriskreductionandsocialprotection;and

• Genderequalityandempoweringwomenandgirls.

TheForeignPolicyWhitePaper,publishedinDecember2017,highlightedthatAustralia’sdevelopmentassistanceprogramsupportspartnercountriesintheireffortstobecomemorestable,prosperousandresilient.ItconfirmedthattheobjectiveofAustralia’sdevelopmentassistanceistoreducepovertyandalleviatesufferingaswellasservingAustralia’snationalinterests,magnifyingtheinfluencethatAustraliabringstobearonpressingregionalandglobalproblems,includingeffortstomeettheSustainableDevelopment Goals (SDGs).

ApeerreviewoftheAustralianaidprogramwasundertakenin2017bytheDevelopmentAssistanceCommittee (DAC) of the Organisation for Economic Co-operation and Development (OECD).3 The peer reviewpresentedanoverallpositiveassessmentoftheaidprogram,includingworkongenderandperformance. It also made a number of recommendations, including around aid volume, mainstreaming theenvironmentandclimatechange,aligningthepolicyframeworkwiththeSDGsandDFAT’saidcapability.Thepeerreviewwaspublishedon26March2018andDFATisconsideringeachofthereview’srecommendationsinthecontextofongoingeffortstostrengthentheoperationoftheaidprogram.

DFATcontinuestoundertakeaphasedapproachtoreportingagainsttheSDGs.In2016-17,annualAidProgramPerformanceReportsforcountryandregionalprogramsidentifiedwhichSDGsweresupportedbyindividualcountryandregionalprogramobjectives.From2017-18,newAidInvestmentPlanswillidentifyhowplannedactivitiesundereachcountryandregionalprogramobjectivewillcontributetotheachievement of the SDGs.

1 Making Performance Count: enhancing the accountability and effectiveness of Australian aid,DFAT,18June2014,accessedat:http://dfat.gov.au/about-us/publications/Pages/making-performance-count-enhancing-the-accountability-and-effectiveness-of-australian-aid.aspx.

2 Australian aid: promoting prosperity, reducing poverty, enhancing stability,DFAT,18June2014,accessedat:http://dfat.gov.au/about-us/publications/Pages/australian-aid-promoting-prosperity-reducing-poverty-enhancing-stability.aspx.

3 Review of the Development Cooperation Policies and Programmes of Australia,OECD,(2018).

http://dfat.gov.au/about-us/publications/Pages/making-performance-count-enhancing-the-accountability-and-effectiveness-of-australian-aid.aspx

http://dfat.gov.au/about-us/publications/Pages/making-performance-count-enhancing-the-accountability-and-effectiveness-of-australian-aid.aspx

http://dfat.gov.au/about-us/publications/Pages/australian-aid-promoting-prosperity-reducing-poverty-enhancing-stability.aspx

http://dfat.gov.au/about-us/publications/Pages/australian-aid-promoting-prosperity-reducing-poverty-enhancing-stability.aspx

2 Performance of Australian Aid 2016–17

Outline of this reportThisreportisdividedintofourchaptersandtwoannexes.

Chapter 1 reports on the ten strategic targets under Making Performance Count,whichprovidethebasisforassessingtheperformanceoftheaidprogramasawhole.

Chapter2summarisestheperformanceofcountryandregionalaidprograms.Analysisdrawsonarangeofperformancedatafromfourregionalgroups:Pacific;South-EastandEastAsia;SouthandWestAsia;and Africa, the Middle East and other regions.

Chapter3reportsonmultilateralperformanceassessmentscompletedin2017fortheGlobalEnvironmentFacility,GlobalPartnershiponEducationandtheCommonwealthSecretariat.Theperformance of the Australian NGO Cooperation Program is also summarised in this chapter.

Chapter4summarisesperformancedataforthesixpriorityareasofinvestmentundertheaidpolicy.Inpreviousreports,theperformanceofallinvestmentpriorityareaswasassessed.For2016-17,inadditionto providing performance data for all areas, the Performance of Australian Aid report has focused in depth ontwoareas:healthandgovernance.Forthesetwoareas,theviewsofDFAT’sprincipalspecialistswhooverseetheportfolioshavebeensought.Otherinvestmentpriorityareaswillbeassessedinsimilardetailin subsequent reports.

ThereportalsoincludesasummaryofthemajoractivitiesandachievementsofODAappropriatedtootherAustralianGovernmentdepartmentsandagencies(AnnexA).TheperformanceinformationinthisreportissubjecttoaprocessofqualityassuranceandverificationbytheOfficeofDevelopmentEffectiveness(ODE),undertheguidanceofDFAT’sIndependentEvaluationCommittee(IEC).AdescriptionofthisprocessandtheirassessmentissetoutinAnnexB.

Approach to assessing performance in the aid programTheanalysisinthisreportdrawsonperformanceassessmentsundertakenatthreelevelsoftheaidprogram(referFigure1):

• wholeofaidprogramlevel;

• bilateral (country and regional) and global programs; and

• individual aid investments.

Theperformanceofkeyaiddeliverypartnersisalsoseparatelyassessed.

At the whole of aid programlevel,alignmentwiththeGovernment’spolicydirectionsandprogressagainst the ten strategic targets in Making Performance Count are assessed and reported annually in Performance of Australian Aid reports.

At the program level, the approaches to performance assessment are tailored to the characteristics of differentprograms.

For country and regional aid programs, performance is assessed each year and published in Aid Program Performance Reports (APPRs). To ensure the assessments made are contested and robust, all APPRs are peerreviewedandapprovedbyDFATseniormanagement.TheODEalsoconductsanannualindependentqualityreviewofAPPRs.JudgementsaboutperformancearemadeagainstprogramobjectivescontainedinAidInvestmentPlansforeachcountryorregionalprogram,andexpressedasoneofthreeratings:progresstowardsobjectivesisontrack;progressisatrisk(lessthanexpected);orprogressisnotontrack.APPRsalsoreportonprogressagainstprogram-specificperformancebenchmarksandmutualobligations.


In2016-17,all26programsforwhichanAPPRwasrequiredcompletedandpublishedtheirAPPRsontheDFATwebsite.4

Eachyear,DFATundertakesmultilateralperformanceassessmentsforselectedmultilateralorganisationsreceivingcorefundingfromAustralia.Allmajormultilateralpartnersareassessedeverythreetofouryears.Summariesofmultilateralperformanceassessmentscompletedin2017fortheGlobalEnvironmentFacility,GlobalPartnershiponEducationandtheCommonwealthSecretariatareincludedinChapter3.

At the individual investment level, quality reporting is completed annually for all aid investments over $3 million.ThroughAidQualityChecks(AQCs),eachaidinvestmentisratedasperformingsatisfactorilyorunsatisfactorilyonasix-pointscaleagainstsixaidqualitycriteria.5In2016-17,376AQCswerecompleted6, representing100 per centofeligibleaidinvestments.7ToensureperformanceassessmentsinAQCsarerobustandcontestable,theyaresubjecttopeermoderation.TheODEalsoundertakesanannualspotcheckofthequalityofAQCs.

Anewevaluationpolicywasintroducedin2016-17.Underthispolicy,DFATpreparesandpublishesanannualAidEvaluationPlanthatisreviewedandapprovedbytheSecretary.ThePlanidentifiesevaluationsofindividualaidinvestmentsprioritisedbyvalue,riskorprofileaswellaslargerstrategicevaluationsundertakenbytheODE.Programareasareinvolvedinidentifyingandprioritisingevaluations.Topromoteevaluation use and transparency, DFAT provides management responses to all evaluations and these are published.In2017,DFATpublished41outof43(95percent)plannedevaluations,includingmanagementresponses.Thiscomparestotheendof2016andpriortothenewevaluationpolicy,whenonlyhalfofDFAT’saidevaluationshadmanagementresponsesandonlyathirdwerepublished.

At the delivery partnerlevel,PartnerPerformanceAssessmentsreviewhowwellimplementingpartnersaredeliveringtheservicesspecifiedinaidagreements.Implementingpartnersundereachaidagreementvaluedover$3 millionareratedasperformingsatisfactorilyorunsatisfactorilyonasix-pointscaleagainstfiveassessmentcriteria.In2016-17,84 per centofeligibleaidagreementswereassessed.

Performance information generated at the individual aid investment level feeds into assessments of programperformance,whichinturnprovidesthebasisforassessingtheperformanceoftheaidprogramasawhole.ToensurethatDFAT’sreportingontheperformanceofAustralianaidisrigorous,credibleandsupported by robust evidence, the ODE, under the guidance of the Independent Evaluation Committee, undertakesstrategicevaluationsofparticularprogramsorthematicareasandprovidesindependentoversightofdepartmentalaidperformanceassessmentsystems.EvaluationsundertakenbyODE,andpublishedin2017,arelistedinAnnexB.

4 Thesecomprisedtwenty-onereportsforcountryprograms,fourreportsforregionalprogramsandonereportfortheAustralianNGOCooperationProgram(ANCP),whichprovidesfundingtoaccreditedAustralianNGOs.

5 Ratingsof6(verygood),5(good)and4(adequate)areconsideredsatisfactoryratings;ratingsof3(lessthanadequate), 2 (poor) and 1 (very poor) are considered unsatisfactory.

6 Thesecomprised289AidQualityChecks,68FinalAidQualityChecksand19HumanitarianAidQualityChecks.

7 Investment performance information included in this report refers to DFAT-funded investments only. Whole of aid program data on investment performance in Chapters 2 and 4 relates to DFAT-funded investments only.


Figure 1: Performance assessment in the Australian aid program

How is the performance of the Australian aid program assessed?

Atwhatlevelis performance assessed?

WHOLE OF AID PROGRAM

What is performance measured against?

6aidpolicypriorities10strategictargets

Howisperformance reported?

DFAT’s Annual Report Performance of Australian Aid

PROGRAMS

Country and regional aid programs

Global and other aid programs

AidInvestmentPlanobjectives,performancebenchmarksand

mutual obligations

Sustainable Development Goals

Program-specificperformanceframeworks

Annual Aid Program Performance Reports

Strategic evaluations by OfficeofDevelopment

Effectiveness

Multilateral Performance Assessments

INDIVIDUAL AID INVESTMENTS

6aidqualitycriteria:• Relevance• Effectiveness• Efficiency• Gender• Monitoring & evaluation• Sustainability

Othercriteria:• Innovation• Private sector engagement• Riskmanagement& safeguards• Disability-inclusive development

AnnualAidQualityChecks

Independent operational evaluations

KEY AID DELIVERY PARTNERS

5assessmentcriteria:• Lasting results & impact • Value for money• Collaboration, communication, responsiveness• Policyalignment,risk management, innovation• Effectivepersonnel

Annual Partner Performance Assessments


TransparencyThe publication of an annual Performance of Australian Aid report forms part of the Government’s commitment to transparency and accountability in the management of the aid program. This commitment isincludedaspartofthe2014aidpolicyframework.

DFATmakesavailable,inanopenandaccessibleformatonitswebsite,asubstantialamountofinformation about the Australian aid program including policies, plans, results, evaluations, research, investmentplansandaidfactsheets.DetailedstatisticalinformationonAustralia’saidprogramwaspublishedinMay2017intheformoftheAustralian Aid Budget Summary for 2017-18(“TheOrangeBook”).Additional statistical information is published during the year in The Australian Engagement with Developing Countries: Bilateral relationships at a glance and Australia’s International Development Assistance: Official Sector Statistical Summary.

In2016-17,DFATpublishedover300newaid-relateddocumentsonitswebsite.Duringtheperiod,DFATproduced:26AidProgramPerformanceReports;58independentprogramevaluations;andupdateddocumentsoriginallypublishedin2015-16.DFATprovidedonitswebsiteaidinformationrelatedtofraudcontrolstrategies,fraudlossesandrecoveries.Inaddition,DFATusedtheAusTenderwebsite (tenders.gov.au) to publish information on aid-related business opportunities, annual procurement plans, multi-uselistsandcontractsawarded.

AustraliafullyparticipatesintheInternationalAidTransparencyInitiative(IATI)andfulfillsitsaidreportingobligations to the OECD Development Assistance Committee. DFAT has increased its level of reporting to IATIfrom2015-16to2016-17andwillcontinuetoengagewithIATIinfuture.

TheOECD-DACpeerreviewofAustralia’saidprogram(March2018)statesAustralia‘providesastronglevel of transparency at the aggregate level in terms of policy statements, investment plans and input data reporting’.Thereportstatesthatbetteravailabilityofpublicationsattheactivitylevelwillfurtherimprovetransparency. DFAT recognises more can be done to improve public access to information and to communicatemoreeffectivelyitsdevelopmentresults,andplanstokeepprogressingthisagenda.Thisincludesstrengtheningregular,internalmonitoringoftheDepartment’scompliancewiththeGovernment’s transparency commitments.


Chapter 1 Performance against strategic targetsMaking Performance Countidentifiedtenstrategictargetstoensuretheaidprogramiswellmanaged,achievingvalueformoneyanddeliveringonthekeyprioritiesoutlinedintheGovernment’saidpolicy:Australian aid: promoting prosperity, reducing poverty, enhancing stability.

Attheendof2016-17,nineofthetentargetshadbeenachieved.Thetargetonincreasingaidfortradeinvestmentsto20 per centoftheaidbudgetby2020wasachievedaheadofitstargetdate.Theremainingtarget on gender equality has not yet been achieved. With the release of the Foreign Policy White Paper andachievementofninetargetstodate,areviewofthetargetsisbeingundertaken.

Target 1: Promoting prosperity Promote economic development by increasing Australia’s aid for trade investments to 20 per cent of the aid budget by 2020

Status: Achieved

The aid program achieved this target in 2016-17. Expenditure on aid for trade was $941 million or 23.3 per cent of Australia’s total ODA. This achievement is the culmination of strong progress towards the target since it was announced in 2014, when aid for trade was at 12.9 per cent.

AchievingthetargetaheadofscheduleisareflectionofAustralia’sstrongcommitmenttoaidfortradeasamechanismforsustainedeconomicgrowthandpovertyreduction–the2017ForeignPolicyWhitePaperhighlightsthatwewillcontinuetouseaidfortradetoachievethesegoals.

Ouraidfortradehashelpedtodelivermeaningfulresults,includingforsmallbusinessesandwomen. Forexample:

• Reducing trade costs: WeareworkingwiththeWorldBanktohelpdevelopingcountriesundertaketradefacilitationreforms,suchasstreamliningcustomsprocedures,inlinewiththeWTOAgreementonTradeFacilitation(TFA).InTimorLeste,thisworkhasreducedprocessingtimesatDiliPortfrom16to9days,whichlowersthecostsoftrading,boostslinkstoglobalmarkets,andincreasesinvestmentattractiveness, contributing to Timor Leste’s economic development.

• Financing trade in developing countries:WeareworkingwiththeAsianDevelopmentBanktohelpsmallandmediumenterprisesindevelopingcountriesaccesstradefinance.In2017,oursupporthelpedcatalysemorethan3,500tradefinancetransactionsworth$4.5billionindevelopingcountriesintheIndo-Pacificregion.Thisinvolvedmorethan240banksandsupported2,800smallandmediumenterprises,allowingthemtogenerateadditionalincomebyaccessingglobalmarkets.

• Making trade more inclusive:WearehelpingPacificIslandcountriestomeettheimportquarantinerequirementsoftheirkeytradingpartners.OursupporthashelpedSolomonIslandstomaintainmarketaccesstoEuropefortheirseafoodexports,inanindustrythatsupportsmorethan3,000people.Ithasalsohelpedcocoaexports,benefittingover20,000ruralhouseholdsinSolomonIslands,and9,000inVanuatu,throughincreasedincomesandimprovedlivelihoods.


In2016-17,thelargestshareofAustralia’saidfortradewasdirectedtowardsbuildingproductivecapacity,includinginagriculture,fishing,smallandmediumenterprisedevelopment,andwomen’seconomicempowerment(seeFigure2).Thiswasfollowedbyeconomicinfrastructure(includingintransport,energyandcommunications),andtradepolicyandregulatoryreform(whichisnecessarytocreateanenablingenvironment for trade).

Figure 2: Expenditure by aid for trade categories, 2016-17

Building productive capacity 55.4%

Trade policy and regulations4.3%

Economic Infrastructure 40.3%

Target 2: Engaging the private sectorAll new investments will explore innovative ways to promote private sector growth or engage the private sector in achieving development outcomes

Status: Achieved

The aid program achieved this target in 2016-17, with all new investments exploring innovative ways to promote private sector growth or engage the private sector.

InAugust2015,theMinisterforForeignAffairsreleasedtheMinisterialStatementonEngagingthePrivateSectorinAidandDevelopment–CreatingSharedValuethroughPartnership.TheMinisterialStatementbuiltuponabroaderpolicyplatformarticulatingtheroleforGovernmentincollaboratingwiththeprivatesectortocreatesustainablesolutionstotackledevelopmentchallenges.TheStatementwasfoundedontheconceptofsharedvalue,whichhelpedDFATidentifybusinessesthatcreateeconomicvalueinwaysthatdeliversustainablesocialimpactindevelopingcountries.

The Strategy for Australia’s Aid Investments in Private Sector Development, the companion to the MinisterialStatement,wasalsoreleasedin2015.TheStrategyformalisedtherationale,principlesandapproachestoimprovethegrowthandinclusionoftheprivatesectorinAustralia’spartnercountries.


Operational enhancements to the Department’s investment design and procurement systems mean all newinvestmentsarerequiredtoexploreinnovativewaystopromoteprivatesectorgrowthorengagetheprivatesectorinachievingdevelopmentoutcomes. Thesesystemsthencaptureandtesttheextenttowhichinvestmentspromoteprivatesectorgrowthorengagetheprivatesector.

InthetwoyearssincethereleaseoftheStatementandStrategy,theGovernmenthasmadeprogressindeliveringuponthepolicyintent,reflectedinchangestotheprofileoftheaidprogramtoprioritiseprivate sector-led development. The number and diversity of partnerships formed at corporate, country andinvestmentlevelsandthevalueofprivateresourcesmobilisedhasincreased.In2016,nearlythreequartersofmonitoredinvestmentsengagedwithoneormoreprivatesectorpartners.Thishasoccurredthroughthereorientationandmobilisationofbothpre-existingandnewinvestmentstoattractadditionalsupportandinputfromprivatesectorpartners,inadditiontoscaledupengagementwithprivatesectorpartners.

DFAThasanincreasedcapacitytoengagewiththeprivatesector,througheffortstoidentifyopportunitiestocollaborateandpartnerwithbusiness,andtoworkmoreinnovativelywiththeprivatesector.Programshave been developed to catalyse business engagements in developing environments and emerging markets,atglobalandlocallevels.Forexample,DFATsupportstheUnitedNationsGlobalCompacttoinfluencetheglobalarchitectureforsustainablebusiness,whileprogramssuchastheinnovationXchange’sScaling Frontier Innovation program is supporting social enterprises to scale their development impact in theAsiaPacificregion.

DFATpostsengagewithrepresentativesfromtheprivatesectortoinformandpromotepolicythroughpeakbodiessuchasChambersofCommerceandBusinessCouncils,relevantindustryassociations,andemployergroups.Forexample,inHanoi,DFAT’sExternalAdvisoryCommitteecomprisesprominentAustralianandVietnamesebusinesspeople,academicsandtechnologyexperts,providingfeedbackonnewideasandonDFAT’sapproachwithbusiness,communityleadersandentrepreneurs.InPapuaNewGuinea,DFATworkswiththeAustralia-PapuaNewGuineaBusinessCouncilincludingontuberculosisandaidfortrade;and,supportstheBusinessCoalitionforWomen,comprising60businessesfromthefinance,hospitality,andextractivesectors.ThepurposeofthisCoalitionistoimprovewomen’sleadershipandsafetytoenablethedevelopmentofmoresustainableandprofitablebusinesses.

Attheinvestmentlevel,engagingwithprivatesectorpartnershasbeenmorestraight-forwardinsomesectors than others. Investments categorised as infrastructure, trade facilitation and international competitivenessreportedthehighestnumberofengagementswithprivatesectorpartnersin2016,withservicedeliverysectors(particularlyeducation),reportingthelowest.Themajorityofthisengagementisintendedprimarilytostrengthentheprivatesector,forexample,buildingbetterbusiness-enablingenvironments,supportinggrowthinmarkets,andmaximisingthedevelopmentimpactofbusinesses.Thesearethekeyareasthroughwhichtheaidprogramseekstomeasuresuccessasitengagesinactivitiesthatfocusonaddressingmarketfailures,identifyingsectoropportunities,establishingpartnerships,capacitybuilding,financingandservicedelivery.

Weareworkingwiththeprivatesectorinnewways.StaffwithresponsibilityforeconomicdiplomacyortradehavealwaysinteractedwithprivatesectorrepresentativesasameanstorepresentAustralia’seconomicinterestsoverseas.WhatisnewistheintegrationofdevelopmentobjectivesandtheopportunitytomobiliseOfficialDevelopmentAssistancetosupportDFAT’sworkwhereadevelopmentobjectiveispresent.Modalitiesforprivatesectorengagementarebroadlycategorisedintonewwaysofinvestingfunding,andnewwaysofworkingforstaffwithresponsibilityfordevelopmentpolicyandprogramming.Examplesinclude:knowledgeandinformationsharingtoidentifynewsolutionstodevelopmentchallenges;policydialoguetomeeteconomicanddevelopmentobjectivesthroughpolicyreform; technical assistance to assist private sector partners to engage in achieving development outcomes; capacity development to improve the private sector’s ability to achieve development results; and,financingthroughinnovativemechanismsthatencouragegreaterprivatesectorinvestmentinachieving development outcomes.


Exploringwaystosupportinnovativefinancingmechanismstoencourageprivatesectorinvestmenthasbeenacontinuedfocus.PacificRISEandInvestinginWomenbothuseanimpactinvestingapproach,whileworkcontinuesinthedevelopmentofanEmergingMarketsImpactInvestingFundandapolicyframeworkforinnovativefinancingresults.Someinvestmentshavedevelopedwaystoquantifythereturnoninvestment and funding leveraged on investment in the years to come.

Australia,withcontributionsfromNewZealand,throughitsPacificPartnershiphavehelpedtheInternationalFinanceCorporation(IFC)toexpanditsregionalpresence.ThePartnershipcombinesadvisoryserviceswithinvestmentstogenerateprivatesectoractivityandeconomicgrowthinPacificIslandCountries.MuchofIFC’sworkisaimedattransformingtheoperatingenvironmentfortheprivatesectorinthePacific.Thisincludesbuildingsustainablebusinessenvironments,includingthroughregulatory reform, eliminating discrimination, provide alternative dispute resolution and improving access tofinance.

Despite solid progress on private sector engagement, there have been challenges in fully implementing thisnewwayofworking.ThereisahighlevelofawarenessacrossDFAToftheimportanceofengagingtheprivatesectortoachievedevelopmentoutcomes.However,thereisnotaconsistentorbroad-levelofunderstandingoftheglobalconsensus,outlinedinthe2030AgendaonSustainableDevelopment,thatprivatesectorexpertiseandresourcesarekeytorealisingdevelopmentobjectives.AlsoidentifiedistheneedformorecoherentandconsistentapproachesinDFATtoengagingwiththeprivatesector,andformoredetailedguidanceandcapabilitybuildingforDFATstafftoensureprivatesectorengagementismainstreamed across Australia’s policy agendas and development investments. To respond to these issues, workhasstartedtoexplorewaystoencourageamorestrategicapproachtoworkingwiththeprivatesector,andtodevelopspecificguidanceforstaffindevelopingprivatesectorcollaborationopportunitiesand partnerships.

EngagingthePrivateSector:TheBusinessPartnershipsPlatform

TheBusinessPartnershipsPlatform(BPP)waslaunchedin2015astheflagshipinvestmentinresponsetotheMinisterialStatement.WhiletheStatementactedasacalltobusiness,theBPPwaspositionedasthemechanism.Itwasdesignedtoleveragethepresenceandcompetitiveadvantageof the private sector in contributing to development impact through matched grant funding. The BPPwasfoundedontheconceptofsharedvalue–thatbusinesscandeliversustainablesocialimpactindevelopingcountrieswhileachievingcommercialreturns.TheBPPsupportsengagementbetweenNGOsandtheprivatesector;andinthree-waypartnershipswithDFAT.Theplatformcurrentlybringstogether40privatesectorandNGOorganisationsacrossAsia,AfricaandthePacificin19partnerships,inMyanmar,Pakistan,Indonesia,PapuaNewGuinea,Vietnam,Nepal,Kenya,Bangladesh,Cambodia,Laos,SriLanka,SamoaandVanuatu.Inthefirsttworounds,theBPPhasleveraged$14.32minprivatesectorfunding,withtheprivatesectorcontributing$1.87forevery $1thattheAustralianGovernmentcontributes.Theplatformworksacrossmanysectors,includingagribusiness,financialservices,smallenterprisedevelopment,off-gridenergy,health,women’seconomicempowerment,informationtechnology,employmentservicesanddisability.


EngagingthePrivateSector:AustraliaAwards

ThemajorityofAustraliaAwardsprogramsreportedtheywereengagingtheprivatesectorinachievingdevelopmentoutcomes.TheGlobalAlumniEngagementStrategy,launchedin2016,identifiedopportunitiesforalumnitofacilitaterelationshipsbetweenAustraliancompaniesandmarketsandpartnersindevelopingcountries,andindustrygroupsandrepresentativebodiesinpartnercountries,andDFAT.FormalMemorandaofUnderstandinghavebeendevelopedorusedtofacilitateco-investment.InPapuaNewGuinea,ExxonMobilandNewcresthavebothco-fundedawardsundertheirrespectiveMOUswithDFAT.InthePhilippines,athree-waypartnershipbetweenSanMiguelCorporation(SMC),alocaluniversity(UniversityofSantoTomas)andCurtinUniversityseesscholarscompleteoneyearatthelocaluniversity,followedbyanin-AustraliaawardfundedbyDFAT. These scholars are then employed at the university or at SMC.

EngagingthePrivateSector:ThePacificPartnership

SignedinDecember2012,thefirstPacificPartnershipleveragedtheIFC’sexpertiseasafinancierandfacilitatorofinvestmentinmajorinfrastructuretounlockprivatesectordevelopmentthroughdirectandconsortiumfunding,guaranteesforhighriskventures,andadvisoryservicestoPacificgovernments.

DFAT’s$24millioninvestmenthelpedgenerate:

a) USD572millioninforeigndirectinvestment,includingUSD181.4millioninvestmentbyIFC;

b) improvedaccesstoinfrastructureservicesformorethan1.6millionpeoplethroughstructuringpublic-private partnerships (PPPs);

c) privatesectorsavingsofUSD45.7millionannuallythroughbusinessenvironmentreformandAlternative Dispute Resolution (ADR) mechanisms; and

d) nearlyUSD232millioninfinancingto2,485SmallandMediumSizedEnterprises,including 258women-ownedSMEs,andincreasedaccesstofinanceformorethan2millionindividuals,includingover480,000women.

Target 3: Reducing povertyBy July 2015, all country and regional programs have Aid Investment Plans that describe how Australia’s aid will promote economic growth in ways that provide pathways out of poverty

Status: Achieved

Aid Investment Plans have been completed for all major country and regional programs.

Aid Investment Plans set out the direction for a country or regional program, and are designed to help ensurethemosteffectiveuseofaid.Theydescribewhere,whyandhowAustralianaidwillbedeliveredandtheexpectedresultstobeachieved.AidInvestmentPlansarebasedoneconomic,politicalandsocialanalysisthatidentifiesthekeyconstraintstoeconomicgrowth,privatesectordevelopmentandpoverty


reduction.Drawingonthisanalysis,eachindividualAidInvestmentPlanidentifiesasetofstrategicobjectives,priorityaidsectorsandspecificaidinvestmentstopromoteeconomicgrowthandpovertyreduction.

AidInvestmentPlanscontainperformancebenchmarksandmutualobligations(seeStrategicTarget6)tailoredtothecircumstancesofeachcountryorregion.PerformanceagainstthestrategicobjectivesinanAidInvestmentPlan,aswellasitsperformancebenchmarksandmutualobligations,isreviewedannuallythrough Aid Program Performance Reports.

AidInvestmentPlansforallmajorcountryandregionalprograms,25intotal,werepublishedontheDFATwebsiteon30September2015.ThoughallAidInvestmentPlansshareacommoncommencementdate,eachhavespecificcompletiondates.Severalaidinvestmentplanswillendin2017-18withsuccessorplansunder development.

Target 4: Empowering women and girlsMore than 80 per cent of investments, regardless of their objectives, will effectively address gender issues in their implementation

Status: Not yet achieved

EffortstoprogressgenderequalityandimprovethelivesofwomenandgirlsareareflectionofgenderequalityasacoreAustralianvalueandafoundationofAustralia’sinternationalengagement.Workinthisareaisunderpinnedbystrongevidencethatgenderequalityandwomen’sempowermentcontributetostability,security,andprosperity,aswellasgreatereffectivenessofdevelopmentefforts.DFAT’sGenderEqualityandWomen’sEmpowermentStrategy,launchedin2016,directsustopromotegenderequalitythroughbothstand-aloneworktoaddressbindingconstraints,andintegrationofgenderequalityconsiderationsintoalldevelopmentwork,regardlessofitssectororobjectives.

TargetFourtrackstheintegrationofgenderequalitythroughouttheaidprogram.ItmeasuresthepercentageofAustralianaidinvestmentsthatareeffectivelyaddressinggenderequalityissues duringimplementation,whichisassessedthroughsatisfactoryoraboveratingsintheannualAidQualityCheckprocess.

Theperformancetargetongenderequalityisareflectionoftheaidprogram’sgloballeadershipinthisareaandiswidelyacknowledgedbydevelopmentpartnersasprogressiveandinfluential.Forexample,the2018DACpeerreviewrecognisesAustralia’sapproachtogenderequalityintheaidprogramasexemplary,and highlights its role as a champion “internationally, regionally and bilaterally. A dedicated strategy, performancetargets,financialresourcesandpoliticalleadershipunderpinthiscommitment”.8

Meetingthetarget,however,remainschallenging.During2016-17,77percentofaidinvestmentseffectivelyaddressedgenderequalityinimplementation,fallingshortofthetargetof80percent (Figure5).Progresstowardsthetargetwasunevenacrosstheaidprogram(Figure3).InvestmentsinthePacificfacedmultiplechallengesinaddressinggenderequality,andwillrequirestrongleadershiptoimprove their gender performance. Investments in South East and East Asia, the Middle East and Africa performedwell,whilegenderequalityresultsfrominvestmentsinSouthandWestAsiawereclosetothe80percenttarget.

8 Review of the Development Cooperation Policies and Programmes of Australia,OECD,(2018),p.19.


Figure 3: Gender performance by region, 2016-17

Satisfactory Unsatisfactory

0 20 40 60 80 100

Pacific(incl PNG)

Other(incl Humanitarian)

South and West Asia

Middle East and Africa

South East Asia

Theaidprogramisstillundergoingatransitiontomoregender-focusedinvestments,whichcanbeexpectedtoleadtoimprovedperformanceovertime.TheDepartmentisstillmanagingatailofinvestments that did not adequately incorporate gender equality issues at design. Investments commencingin2014orlaterperformbetterongenderequality(82percentsatisfactory)comparedtothosethatcommencedbefore(76percentsatisfactory).Whileeffortsaremadetoremediatelowerperformingactivities,thisisdifficultandrequiresstrongleadership.Resultsareexpectedtoimproveasaidinvestmentmanagersareincreasinglyskilledandsupportedtomanageforresultsongenderequality.


Figure 4: Gender performance by investment priority area, 2016-17

Satisfactory Unsatisfactory

0 20 40 60 80 100

Health

Effective governance: policies, institutions and functioning economies

Agriculture, fisheries and water

Infrastructure, trade facillitation andinternational competitiveness

Education

Building resilience: humanitarian assistance, disaster risk reduction

and social protection

There is also a variable story by sector (Figure 4), pointing to technical challenges in gender-sensitive design and implementation.9Inparticular,theevidencesuggeststhatitismorechallengingtoundertakegender analysis, develop gender informed designs and demonstrate tangible gender equality results in investmentsthatworktoimprovesystemsratherthandeliveringdirectbenefitsforpeople.

Across the board, there are consistent challenges ensuring commitments to gender equality made by our partnersatheadquarterslevelaretranslatedintomeaningfulprogressforwomenandgirls.TheDepartment is considering greater attention at senior management levels and stronger, mandatory responsestounderperforminginvestments.Reachingthe80percenttargetwillrequirestronglinkageswithexistingseniormanagementaccountabilitystructures.

Themostdirectindicatorformeetingthetargetistheextenttowhichinvestmentsintendfromtheoutsettoaddressgenderequality.Overall,investmentswithgenderequalityasasignificantorprincipalobjectivecontinuetoperformbetterongenderequalityandarangeofotheraidcriteriacomparedtothosethatdonothavegenderequalityasanobjective(Figure5).TheDepartmentisthereforeexploringwaystoimproveperformancebystrengtheninggender-responsiveforward-planning,AidInvestmentPlans,andincreasingdedicatedaidexpendituretowardsgenderequalityobjectives.

9 Gender performance by investment priority area is discussed in Chapter 4 of this report.


Figure 5: Gender equality: investment performance, 2016-17

No gender objective Principal or significant objective Whole of aid program

Gender equality

Sustainability

Monitoring andevaluation

Efficiency

Effectiveness

Relevance

Percentage of aid investments rated satisfactory

63

90

78

77

97

85

90

92

81

87

97

87

93

88

72

60

97

81

85

In2016-17,Australiaspent$2.07billiononinvestmentsthattargetedgenderequalityasaprincipalorsignificantobjective.Thisamountsto62percentofDFAT’scountry,regionalandglobalaidinvestmentsbyvalueacrossarangeofsectors(Figure6).Mostofthisexpenditureisthroughinvestmentswheregenderequalityisintegratedasasecondary(significant)objective.GloballyrecognisedkeyfactorsforeffectiveperformanceongenderequalityhavebeencodifiedbyOECD-DACinMinimumRecommendedCriteriaforexpenditurethatisconsideredastargetinggenderequality.FromFY2017-18onwardsDFATwillapplytheseMinimumRecommendedCriteriaforitsaidexpenditurereporting.Thisispartofoureffortstoensureaidinvestmentsareinformedbygenderanalysis,takeaDoNoHarmapproach,andaddressandmeasureprogresstowardsgenderequalitywherepossible.TheapplicationofthenewCriteriameansfiguresconcerning2016-17expenditureandprioryearswillnotbecomparablewith later years.

DFAT’s$55millionGenderEqualityFund,establishedin2015-16,includesactivitiestosupportnewandinnovativeapproachesthatcanaccelerateeffectivegenderintegrationacrosstheaidprogram.Thisincludes data collection to increase visibility and accountability in relation to gender equality gaps, standardsettingforintegrationofstrategiestoendviolenceagainstwomenintoprioritysectors,andmainstreaming of gender equality considerations in private sector partnerships.


Figure 6: DFAT aid expenditure by gender objective, 2016-17

Not an Objective 38%

Principal Objective8%

Significant Objective 54%

Keytorobustgenderintegrationinaidinvestmentsarestrongleadershipandthetimelyavailabilityofgenderspecialistexpertiseandadvice.In2016-17,theDepartmentcontinuedtosupportutilisationofgenderexpertise,inparticularduringdesignofnewinvestments.Genderspecialistswereinstrumentaltoprograms being deliberate during the design phase about the intention to achieve gender results, implementing a strong, evidence-based approach, and developing and implementing gender strategies at programandinvestmentlevel.However,challengesexistinmeetingdemand,sequencingtechnicalsupportandrecruitingspecialistgendersupportinfieldssuchaseconomicreform,publicfinancialmanagement, and infrastructure.

DFATcontinuedtotrainstaffinAustraliaandoverseasthroughtailoredcapacitybuildingactivities. The approach to gender training is being refreshed to drive improved capacity development from mid-2018.ToaccelerateimplementationofDFAT’sGender Equality and Women’s Empowerment Strategy in humanitarianwork,supplementaryguidancehasbeenprovidedforinvestmentmanagersonhowtoprogressgenderequalitythroughhumanitarianandemergencyinvestments.Additionalguidancewillbedevelopedonhowtoachievegenderequalityresultsinsectorswheregenderintegrationeffortsarestagnatingorrelativelynew,suchasinfrastructure.


Target 5: Focusing on the Indo-Pacific regionIncrease the proportion of country program aid that is spent in the Indo-Pacific region to at least 90 per cent from 2014-15

Status: Achieved

This target was achieved in 2016-17, with 90.2 per cent of country attributable aid spent in the Indo-Pacific region.

ThistargetensuresthattheAustralianaidprogramisfocusedontheregionwhereAustraliacanand,astheForeignPolicyWhitePapermakesclear,mustmakethemostdifference.StrongereconomicgrowthandstabilityintheIndo-PacificregionisdirectlyinAustralia’sinterests.

This target measures the proportion of country attributable aid that is spent in countries in the Indo-Pacificregion.Thisincludesbilateralandregionalaidexpenditure,aswellassomeglobalandcrossregionalaidthatcanbeattributedtocountriesintheIndo-Pacificregion.Forexample,humanitarianassistanceearmarkedtoparticularcountriesisincludedincountryattributableaid,butcorefundingtointernationalhumanitarianagenciesandmultilateraldevelopmentagenciesisnotincluded.

Figure 7: Percentage of country attributable aid that is spent in the Indo-Pacific region

90.2%

% o

f co

untr

y p

rog

ram

mab

le a

id s

pen

t in

the

Ind

o-P

acifi

c

2016–172015–162014–152013–142012–13

90.6%90.3%

88.6%

85.8%

Strategic target 90%


Target 6: Delivering on commitmentsFrom July 2015, progress against mutual obligations agreed between Australia and its key partner governments and organisations will form part of program performance assessments

Status: Achieved

This target was first achieved in November 2015. Each year, progress against performance benchmarks and mutual obligations is published in Aid Program Performance Reports (available on the DFAT website). Aid Program Performance Reports for 2016-17 were published in September 2017.

PerformancebenchmarksandmutualobligationsforallmajorcountryandregionalprogramsaresetoutinAidInvestmentPlansandAidProgramPerformanceReports.ForPacificprograms,mutualobligationsarealsoincludedinAidPartnershipscompletedduring2015-16.Themostrecentassessmentofprogresstowardsmeetingbenchmarksandmutualobligationsareincludedin2016-17AidProgramPerformanceReports.

Performancebenchmarksassistwithassessingprogressagainstacountryprogram’sobjectives.Asetof171performancebenchmarkswerereportedfor2016-17.Figure8showstheprogressagainstbenchmarksforthesixpriorityareasoftheaidpolicy.Overall,121benchmarkswereachieved,44werepartlyachievedand6werenotachievedorcouldnotbeassessed.Chapter2reportsonprogressagainstperformancebenchmarksbyregion.

Figure 8: Performance benchmarks by investment priority area, 2016-17

Achieved Partly achieved Not achieved

Agriculture,fisheries and

water

Buildingresilience

Educationand health

Effective governance

Genderequality

Infrastructure and trade

Other

5

15

31

22

18

27

3

1

5

6

10

9

11

2

4

1

1

The stronger focus on mutual obligations under Making Performance Count builds on longstanding and widelyacceptedaideffectivenessprinciples.Boththe2005Paris Declaration on Aid Effectiveness and 2011 Busan Partnership for Effective Development Cooperation emphasiseownershipandmutualaccountabilityaskeyprinciplesformakingaidmoreeffective.


Abroadrangeofmutualobligationsisreportedagainstin2016-17AidProgramPerformanceReports.Australia’sobligationsgenerallytaketheformofbudgetcommitments,alignmentofAidInvestmentPlanswithcountrypriorities,andwaysofworkingincludingresponsiveness,flexibilityandinnovation.

Obligations for partner governments are derived from a range of sources. National development plans typicallyrepresenttheoverallframeworkforidentifyingcommitmentsandassessingprogress.Thesecommitmentsvaryandrangefromminimumsectoralbudgetallocationstospecificlegislativeandpolicyreforms.Forexample,theGovernmentofSolomonIslandscommittedtoatargetof22percentrecurrentbudgetfundingfortheeducationsectorin2016.Thiscommitmentwasexceededwith24percentallocated.Obligationsarealsoderivedfromprojectspecificcommitmentsmadebypartnergovernments.Forexample,CambodianGovernmentfundingoftheHealthEquityandQualityImprovementProject,originallyestimatedtobe54percentoftotalfunding,exceededexpectations.Inthefirstninemonths ofoperation,theCambodiannationalbudgetfunded64percentofprogramcosts.

Target 7: Working with the most effective partnersBy July 2015, design and apply new systems to assess the performance of the aid program’s key delivery partners and ensure stronger links between performance and funding

Status: Achieved

The target was achieved in 2014-15 with the introduction of Partner Performance Assessments; a strengthened Multilateral Performance Assessment process for multilateral organisations receiving core funding; reforms to systems for assessing performance under the Australia-NGO Cooperation program; and progress in linking performance to payments in aid agreements.

In2016-17,75 per centoftotaladministeredODAwasdeliveredthroughagreementswiththreemaintypesofimplementingpartners:commercialpartners,multilateralorganisationsandNGOs(Figure9).


Figure 9: Total administered ODA by delivery partner type, 2016-17

Multilateral organisations42%

Other partners 5%

Developing country governments3%

Universities and academic institutions7%

Australian public sector organisations9%

Non-Government Organisations 11%

Commercial suppliers21%

PartnerPerformanceAssessments(PPAs)reviewhowwellkeyimplementingpartners(commercialpartners,multilateralorganisationsandNGOs)aredeliveringtheservicesspecifiedinaidfundingagreements. The focus is on the performance of the implementing partner, as distinct from the quality of theinvestmentitself(whichisassessedbytheannualAidQualityChecks). Assessmentswerecompletedforindividualfundingagreementsvaluedatover$3 millionexceptforcorecontributionstomultilateralorganisations.

Table 1: PPA completed by delivery partner type, 2016-17

Partner type Number of PPAs

Overall value of agreements assessed

($m)

NGOs 87 $1,212

Commercial suppliers 90 $4,012

Multilateral Organisations 128 $2,581

The results (Table 2) indicate that the three main delivery partner categories are all performing to an adequatelevelorbetter.Over94 per centofassessmentscompletedhadratingsofadequate(4)orhigheronascaleof1to6.10

10 Ratingsof6(verygood),5(good)and4(adequate)areconsideredsatisfactoryratings;ratingsof3(lessthanadequate), 2 (poor) and 1 (very poor) are considered unsatisfactory.


Table 2: Average PPA rating score by delivery partner type, 2016-17

Commercial Partners NGOsMultilateral

OrganisationsOverall Partner Average Rating

4.9 4.8 4.5 4.7

CommercialpartnersachievedthehighestaveragePPAratingbydeliverypartnertype.Agreementswithcommercial contractors are characterised by a high level of managerial direction and control by DFAT, whereasgrantagreementswithNGOsandmultilateralorganisationsarepartnershipagreementswhereDFAThasagreedtofundinvestmentsoverwhichpartnershavemuchgreaterautonomyininvestmentdesign and implementation. Australia’s investment in multilateral programs is often also made in collaborationwithotherdonors,requiringgreaterdegreesofcompromisebyallpartiesthanisrequiredinother arrangements. In addition, multilateral organisations operate under policies and procedures endorsedbyboards(whichincludeAustralianrepresentation)andthesepoliciesandprocedurescanbedifficulttochangequicklytomeetAustralia’sspecificinterestsinindividualcountries(incontrasttotheflexibilityDFAThaswhenengagingcommercialsuppliers).

Target 8: Ensuring value for moneyDeliver high standards of value for money in at least 85 per cent of aid investments. Where standards are not met and improvements are not achieved within a year, investments will be cancelled

Status: Achieved

This target was achieved in 2016-17 with 90 per cent of investments rated as satisfactory for effectiveness and 85 per cent of investments rated as satisfactory for efficiency.

DFATseekstoensurethatvalueformoneyconsiderationsareappliedacrossallaidmanagementpolicies,practicesandinvestments.DatatotrackprogresstowardsthistargetisdrawnfromDFAT’sannualAidQualityChecks.Investmentsratedassatisfactoryagainsttheefficiencyandeffectivenesscriteriaareconsideredtobedeliveringhighstandardsofvalueformoney.


Figure 10: Percentage of aid investments with satisfactory ratings for efficiency and effectiveness, 2011-12 to 2016-17

Efficiency Effectiveness

7880 80

87 86 8587

8986

9087

90

2011–12 2012–13 2013–14 2014–15 2015–16 2016–17

Annualeffectivenessoutcomeshaverangedbetween86 per centand90 per centsince2011-12 (Figure10).The2016-17outcomeof90 per centforeffectivenessisatthehighendoftheaverageoutcomesince2011-12.

Whileefficiencyoutcomeswereslightlylowerthanlastyear,theycontinuetoberatedhigherthanfor2013-14andearlieryears.Thecontinuingtrendofefficiencyoutcomesat85percentorhigherindicatesthattheunderlyingefficiencyoftheoverallaidprogramhasimproved.However,therecontinuestobemarkeddifferencesbetweenregionswiththePacificregionefficiencyoutcomesrating74percentcomparedto92percentforSouthEastandEastAsia.ThislikelyreflectsmorefluidoperatingenvironmentsinPacificislandcountries.

Thisstrategictargetalsorequirestheidentificationofunderperforminginvestmentsbasedonunsatisfactoryratingsforbotheffectivenessandefficiencycriteria.In2016-17,twenty-fiveunderperforminginvestmentswereidentifiedasInvestmentsRequiringImprovement.Ifperformancedoesnotimproveforeachinvestmentwithin12months,theyaresubjecttocancellation.In2015-16,twenty-oneunderperforminginvestmentswereidentifiedasInvestmentsRequiringImprovement.Ofthesetwenty-oneinvestments,fiveinvestmentswereagainassessedin2016-17asunsatisfactory.Threeoftheseinvestmentshavenowended,onewascancelledandthefifthisunderreview.


Target 9: Increasing consolidationReduce the number of individual investments by 20 per cent by 2016-17 to focus efforts and reduce transaction costs

Status: Achieved

This target was achieved on 1 July 2016 when the number of individual investments had reduced by 23 per cent.

Focusingonfewer,largeraidinvestmentsshouldimprovetheefficiencyandeffectivenessofAustralia’saidprogram.ConsolidationcanreducetheadministrativeburdenonDFATstaff,partnergovernmentsandkeydeliverypartners.However,thesebenefitsmaynotalwaysbeachievedwithoutcarefulmanagementofaidinvestments,particularlymulti-sectorinvestments.Furtheranalysisisbeingundertakentobetterdeterminetheeffectivenessandefficiencyoflargerinvestments.

Figure 11: Progress on consolidation of aid investments

1319 1142 1080 983 950

1-Jul-2013(baseline)

1-Jul-2014 1-Jul-2015 1-Jul-2016 1-Jul-2017

Num

ber

of

acti

ve a

id in

vest

men

ts

Target - 1055


Target 10: Combatting corruptionDevelop and implement new fraud control and anti-corruption strategies for all major country and regional programs by July 2015

Status: Achieved

Fraud and anti-corruption strategies are in place for all major country and regional programs.

ThesestrategiesidentifyrisksandpotentialincidencesoffraudandcorruptionrelevanttothedeliveryofAustralian aid. They detail the controls and measures adopted to safeguard Australian Government aid programfunding,andactionsandinitiativestosupportcountryeffortstocombatfraudandcorruption. Afullreviewofallstrategiesisunderwayandisscheduledforcompletionbymid-2018.TheAustralianaidprogramisdeliveredinaparticularlydifficultsetofcountryenvironmentswherefraudandcorruptioncanbe commonplace. The strategies complement the robust systems and procedures that are in place to protect public money and property from fraud and corruption.


Chapter 2 Country and regional program performanceThischaptersummarisestheperformanceofAustralia’scountryandregionalaidprograms.Keyperformance trends and areas for improvement are highlighted for programs, organised into four regional groups:Pacific;South-EastandEastAsia;SouthandWestAsia;andAfrica,theMiddleEastandotherregions.Individualcountryandregionalprogramsachievedsignificantresultsin2016-17.TheseresultsareavailableonDFAT’swebsite,andarenotrepeatedinthisreport.11

For country and regional aid programs, performance is assessed each year and published in Aid Program Performance Reports.12AssessmentsofperformancearemadeagainstprogramobjectivescontainedinAidInvestmentPlansforeachcountryorregionalprogram,andexpressedasoneofthreeratings:progresstowardsobjectivesisontrack;progressisatrisk(lessthanexpected);orprogressisnotontrack.

Figure 12: Progress against program objectives by region, 2016-17

Pacific East Asia South and West Asia Africa and theMiddle East

On track At risk Off track

62

79 81 83

35

21 1917

3

Per

cent

age

of

pro

gra

m o

bje

ctiv

es

11 Countryandregionalfactsheetsareavailablefromhttp://dfat.gov.au/aid/where-we-give-aid/Pages/where-we-give-aid.aspx.

12 APPRs are completed for country and regional programs of $15 million or greater. APPRs are available at http://dfat.gov.au/about-us/publications/Pages/aid-program-performance-reports.aspx.


Performancebenchmarks,togetherwithothermonitoringandevaluationindicators,areusedtoassessprogressagainstAidInvestmentPlanobjectives.ProgressagainsteachbenchmarkisreportedinAidProgramPerformanceReports.Performanceagainstobjectivesandbenchmarksforindividualcountryandregionalprogramsissummarisedbyregionbelow(seealsothediscussionofperformancebenchmarksunderstrategictargetsixinChapter1).

PacificThePacifichasapopulationofabout10.2millionpeople,spreadacrossadiverseregionmadeupofhundredsofislands,andscatteredoveranareaequivalentto15percentoftheglobe’ssurface.Pacificislandcountriesfaceacomplexrangeofdevelopmentchallengesinthisenvironment.Manycountriesintheregionhaveeconomicgrowthratesthatdonotkeeppacewithpopulationgrowth.Geographicisolationandsmallmarketsreduceinternationaltradeincentives,furthercurtailingeconomicgrowth.NarrowproductionbasesandongoingrelianceonimportedfuelexposethemajorityofPacificislandcountriestocommoditypricefluctuations.OverfishingandenvironmentalfactorsthreatenthesustainabilityoffisheryresourcesonwhichPacificislandeconomiesandcommunitiesdepend.Employmentprospectsarelow.Theformalprivatesectoristypicallysmallwithsignificantinformaleconomies.Thishighdegreeofinformalityreducestaxationrevenuethatwouldotherwisebeavailabletoincreasegovernmentexpenditureonhealth,educationandotherareas.Greaterregionalintegrationisnecessary to leverage economies of scale.

Pacificislandcountriesareparticularlyvulnerabletotheeffectsofclimatechange,whichexacerbatebroaderdevelopmentchallenges,heightenriskstolivelihoodsandfoodsecurity,andcompoundsecuritychallenges.FouroutofthetenmostdisasterpronecountriesintheworldareinthePacific(Vanuatu,Tonga,SolomonIslands,PapuaNewGuinea).13InFebruary2016TropicalCycloneWinstonwasparticularlydevastating, leaving 44 people dead and a damage bill of more than $2.5 billion.

Governanceisakeydevelopmentpriority.Keygovernanceissuesincludethebuildingandmaintenanceoflawandorder,peaceandstability,tacklingcorruption,andimprovingfiscalmanagement.Strongergovernancewillcontributetoastable,secureandprosperousregion,andsupportPacificislandcountriesto achieve improved development outcomes.14 Governance programs receive the largest proportion of AustralianODAexpenditurebyinvestmentpriorityareainthePacific(Figure13).

AustraliaisthelargestcontributorofODAtothePacific.In2016-17,27.9percentofAustralianODAwasallocated to the region. PNG remained the largest recipient of Australian ODA in the region, representing 48.9percentofPacificregionalexpenditureand13.6percentoftotalAustralianODA.

13 The World Risk Index (2016),accessedathttps://collections.unu.edu/eserv/UNU:5763/WorldRiskReport2016_small.pdf.

14 Regional – Effective regional institutions(2018),accessedathttp://dfat.gov.au/geo/pacific/development-assistance/Pages/effective-governance-pacific-regional.aspx.


Table 3: ODA by country program: Pacific, 2016-17

Country Program

2015–16 2016-17

($m) ($m)

PapuaNewGuinea 534.3 549.9

Solomon Islands 172.6 155.2

Fiji 87.0 80.2

Vanuatu 65.6 66.1

Samoa 38.2 35.4

Tonga 31.7 28.1

Kiribati 29.3 28.7

Nauru 24.9 23.6

NorthPacific 9.7 10.7

Tuvalu 8.7 9.0

CookIslands 3.6 3.9

NiueandTokelau 3.4 4.3

PacificRegional 113.9 128.5

Pacific Total 1,122.9 1,123.7

Figure 13: Total Australian ODA by investment priority area: Pacific, 2016-17

Effective governance35%

General development support3%

Agriculture, fisheries & water6%

Infrastructure and trade16%

Education20%

Health15%

Building resilience5%


Program quality

In2016-17,62 per centofPacificcountryandregionalprogramobjectiveswereassessedasontrack(Figure14).Theproportionofprogramobjectivesatrisk(progresslessthanexpected)was35 per cent.Oneobjectivewasassessedasoff-track.Theperformanceofeachcountryagainstprogramobjectivesissetoutbelow.Pacificprogramshaveidentifiedmanagementactionstoimproveprogramperformance.These actions are set out in country and regional Aid Program Performance Reports.

Figure 14: Progress against program objectives: Pacific, 2016-17

On track At risk Off track

1

3

2 2 2 2 2 2 2

2

1

1 2 1 1 21

Papua New Guinea

Solomon Islands

Fiji Vanuatu Samoa Kiribati Tonga Nauru PacificRegional

ProgressagainstperformancebenchmarksbyPacificprogramswasmixed,with59percentofbenchmarksachievedand32percentpartlyachieved.Sixbenchmarks(eightpercent)werenotachieved,fourofwhichrelatetoperformanceagainstthehumandevelopmentobjectiveintheNauruprogram.


Figure 15: Progress against performance benchmarks: Pacific, 2016-17

Achieved Partly Achieved Not Achieved Data Unavailable

Papua New Guinea

Solomon Islands

Fiji Vanuatu Samoa Kiribati Tonga Nauru PacificRegional

5 4

4

6

6

6

2

4

5

33

1

5

3 1

2

5

21

1

4

Australia’sindividualaidinvestmentsinthePacificratedloweronqualityassessmentcriteriawhencomparedtotheaidprogramasawhole(Figure16).Genderequalitycontinuestobeaparticularchallenge,requiringthegradualandsystematicquestioningofwell-establishedandcloselyheldsocialnorms.Programsneedtocontinueeffortsonimprovinggenderequalitybyensuringwomenandgirls areabletobenefitfromallPacificaidinvestments.ThePacificcontinuestobeachallengingenvironmentfor monitoring and evaluating aid investments, given host government capacity constraints and underdevelopedsystems.Oftheeightinvestmentsidentifiedasrequiringimprovementin2015-16, sixhavebeencompleted.Ofthetwoongoinginvestments,oneimprovedperformanceduring2016-17andonewasagainassessedasunsatisfactoryandisunderreview.Eleveninvestmentswereidentifiedasrequiringimprovementbasedon2016-17AidQualityCheckresultsandmanagementactionplanshavebeen put in place.


Figure 16: Aid investment performance: Pacific, 2016-17

Pacific Whole of aid program

Gender equality

Sustainability

Monitoring andEvaluation

Efficiency

Effectiveness

Relevance


90

78

77

97

85

90

86

67

65

96

74

87

The Papua New Guineaprogramdeliveredawiderangeofoutputsin2016-17.Forexample,over760kmofnationalpriorityroadsweremaintainedand/orupgraded,constructionofsixmajorbridgeswascompletedinOroprovince,financialliteracytrainingforapproximately46,000peoplewasdelivered, thenationalelectionwassupported,andconstructionofthefirstphaseofredevelopmentworksattheLaeAngauMemorialHospitalincludinganoperatingtheatre,20bedwardandnewdentalclinicwascompleted. Our support to Bougainville enhanced stability, improved service delivery and promoted economic activity.

OneofthreeprogramobjectivesforPNGwasassessedasontrack.Undertheobjectiveenabling economic growth,progresswasmadeinprivatesectordevelopment,economicgovernanceandhighimpactinfrastructure.Progressagainsttheobjectiverelatingtopromoting effective governancewasassessedaslessthanexpectedduetodelaysindevelopingsomegovernanceprogramsandpartialachievementofperformancebenchmarks.Thetargetof3,000womenand4,000mentrainedincorepublicserviceskillswaspartiallyachieved(6,301trained)includingthroughourinvestmentinthePacificLeadersandGovernancePrecinct.Datawasnotavailableonthebenchmarkrelatingtothenumberofsurvivorsofviolencereceivingservices.AustraliawillcontinuetoworkwiththePNGGovernmenttoconfirmthestrategicprioritiesdrivingtheaidprogram’ssupportforpublicsectorleadership,aswellasonachievinggreater integration of gender and inclusion principles.

ProgressagainstthePNGprogramobjectiveenhancing human developmentwasalsoassessedasless thanexpected,asoutcomesinsupportinghealthfinancingwerebelowexpectationsandtherewere alsoweaknessesinmonitoringandevaluationdata,particularlyineducation.Inresponse,AustraliaisdevelopingaSectorInvestmentPlanthatwillestablishaneweducationprogramwitharobustmonitoringandevaluationframework,aswellascontinuingtosupportthePNGGovernmenttocollect,analyseanduse relevant education information to measure progress and inform policy development and implementation.


For Solomon Islands,threeoffouraidprogramobjectiveswereassessedasontrack,relatingtosupporting stability, an economic operating environment more attractive to business and enhancing human development.Anindependentreviewconfirmedachievementofthemajorityofkeyindicatorsintheeducationsectorprogramwhileanindependentreviewfoundmoremixedperformanceinthehealthsectorwith73percentoftargetsachieved.Progressagainsttheobjectivemore men and women able to earn a cash-based incomewaslessthanexpected.Thisisbecausealthoughthereareeffectiveprogramactivitiesunderwaytheydonotyetamounttoasustainedcontributiontotheobjectiveofimprovingincomes,particularlyruralincomes.Thereisalsostillroomtotranslateworkonenablingeconomicgrowthintomorecash-basedincomeopportunitiesformenandwomen.Thisisdespiteacontinuedshiftinbilateralexpendituretowardsenablingeconomicgrowth.Akeypriorityin2017-18willbetobetterunderstandthebarrierstowomen’sparticipationintheworkforce.AcomprehensiveperformanceframeworkfortheeconomicgrowthportfoliowillbedevelopedaswellasimprovedinformationlinkagesbetweentheprivatesectorandSolomonIslandsGovernment.

In Fiji,twoofthreeprogramobjectiveswereassessedasontrackrelatingtoprivate sector development and human development. Implementation of Australia’s $15 million Tropical Cyclone Winston response packagewascompletedandsubstantialprogresswasmadeindeliveringAustralia’s$20millionrecoverypackage.However,poorweather,difficultiesaccessingsites,shortagesofbuildingmaterialsandsomesub-standardinitialbuildingworkresultedindelaysinrebuildinganumberofschools,acommunityhealthcentreandamajormunicipalmarket.Timeneededtodelivertherecoverypackagewasalsounderestimated.ThiscontributedtowardsprogressagainsttheobjectiveTropical Cyclone Winston being assessedaslessthanexpectedatthisstageofimplementation.AnindependentevaluationoftheresponsefoundthatsupporttoUNICEFandSavetheChildrenaspartoftheresponsepackagehelpedtoreopen schools and establish temporary learning spaces, introducing an element of stability in cyclone-affectedcommunitiesandprovidingentrypointsforawiderarrayofdisasterresponseservices.However,theevaluationalsofoundtherewasdecliningeffectivenessovertimeasneedsevolvedandwhatwereintendedtobetemporarymeasures(suchastheuseoftentsaslearningspaces)werestillbeingusedoneyear on from the cyclone.15Inresponse,theprogramwillimplementagreedrecommendationsfromtheevaluation.Australia’sresponsetoCycloneWinstonalsobuiltonlessonsdocumentedina2017ODEevaluationofAustralia’sresponsetoCyclonePam,whichhitVanuatuinMarch2015.16 Forexample,intheWinstonresponseDFATensuredthatAusMATandfundedNGOsworkedwithlocalpartnersandprioritisedcapacity building.

In Vanuatu,progressagainsttheobjectives building resilient infrastructure and environment for economic opportunity and improving community safety and resilience wasassessedasontrack.Progressagainsttheobjectiveimproving early education and essential health serviceswasratedaslessthanexpected,reflectingmixedachievementsbyhealthinvestments.Healthcontinuesasachallengingandcomplexsector.Whileprogress has been made, immunisation coverage, family planning and screening for non-communicablediseasesarestillareasofconcern.Workforceshortages,particularlyinruralareas,alsoremainasignificantriskaffectingaidposts,hospitalsanddispensaries.Programinvestmentsinhealth,whileindividuallyhighlyrelevant,arehighlyfragmented.Assessingtheprogramis,asresult,challenging.Designofanewphaseofthehealthprogram,includingastrengthenedmonitoringandevaluationframework,hascommencedandwillbeimplementedin2018-19.Thisnewdesignwillalsostrengthengender equality across health investments.

Progressagainsttheobjective supporting cyclone recovery and reconstructionwasalsolessthanexpected.DelaysinprogrammingfundstomeetriskandsafeguardrequirementshasslowedimplementationofinvestmentsandthelargenumberofsmallprocurementshasslowedapprovalsthroughVanuatuGovernment systems. Increased construction has also put pressure on the availability of building materials

15 For a copy of the evaluation, refer to Tropical Cyclone Winston Education Response Evaluationathttp://dfat.gov.au/about-us/publications/Documents/tropical-cyclone-winston-education-response-evaluation.docx.

16 For a copy of the evaluation, refer to Cyclone Pam Humanitarian Assistanceathttp://dfat.gov.au/aid/how-we-measure-performance/ode/other-work/Pages/evaluation-of-effectiveness-australias-response-cyclone-pam.aspx.


and,inaddition,infrastructureworksareofteninremotelocations,presentingchallengesforthesupplyand transport of materials. A remediation plan has been established to improve performance against thisobjective.

For the Samoaprogram,progressagainsttheobjectivesenabling economic growth and strengthen governance wasassessedasontrack.Mostperformancebenchmarksagainsttheseobjectiveswereachieved.Progressagainsttheobjectiveprogress health and education outcomes continued to be less than expected.InSamoa’seducationsector,areviewoftheinclusiveeducationprogram,foundthatwhilegainshadbeenachieved,barrierstoeducationexist,includingteachercapacity,genderequality,mobilityconstraints,andparentperceptions.Itwasidentifiedthatfutureworkinthisareaneedstofocusmoreonprofessionaldevelopment,coordinationandreportingtodemonstratequantifiableoutcomes.Ananalysisoflessonslearntwillinformfutureeducationprograms,particularlythosefocusingonchildrenwithdisabilities.Areviewoftheheathsectortoidentifyactionstostrengthenprimaryhealthcarewasputonhold pending a restructure of the sector.

In Tonga,twoofthreeprogramobjectiveswereassessedasontrack.Theserelatedtogovernance and skills development.Performancebenchmarksrelatedtotheseobjectiveswereachieved.Progressagainsttheobjectivea more effective, efficient and equitable health systemwaslessthanexpectedreflectingpartialachievementofbenchmarks.WhilethemainindicatorsofTonga’sbudgetarycommitmentstohealthhavebeenmet,theEssentialPackageofServices,whichisanimportantaspectofachievinguniversalhealthcoverage–remainsunderdevelopment.Reportingonperformanceagainstnon-communicablediseasesbenchmarkswasalsodelayed.Inresponse,theprogramplanstostrengthenreportingsystemstoenablebetterunderstandingoftheimpactofthehealthprogramandadaptactivitiestobemoreeffective.

In Nauru,programobjectivesrelatingtopublic sector management and infrastructurewereassessedason-track.Progressinthehealthsectorprogramunderthesupporting human development objectivewasassessedasoff-trackwithactivitiessignificantlybehindschedule.Aremediationplanhasbeenestablishedtoimproveperformance.Effortswillbefocusedonfillingvacanthealthadviserpositionsandaredesignofhealth investments. Progress in the education sector program under the human developmentobjectivewasalsolessthanexpectedduetounderperformanceagainstregionaleducationstandards.Over2017-18,therecruitment and mobilisation of an Education Adviser to support delivery of the Education Strategic Plan, aswellascompletionoftheLearningVillage,whichwillprovidebetteraccesstotertiaryeducationwithanewuniversitycampus,isexpectedtoleadtoimprovedperformance.Tworeviewsscheduledtobecompletedin2018areexpectedtogeneraterecommendationsaimedatimprovingperformanceofeducation investments.

For the Pacific Regional Program,twooffourprogramobjectiveswereassessedasontrack.Theseobjectivesrelatetoeconomic growth and empowering women and girls.Anindependentmid-termreviewofthePacificFinancialInclusionProgramfoundfiveoutofsixendofprogramtargetshadbeenachievedandhighlightedtheprogram’scollaborativeandholisticapproachasimportantinincreasingfinancialinclusionforlow-incomepopulations.Anindependentevaluationfollowingfouryearsofimplementationoftheten-yearPacificWomenShapingPacificDevelopmentprogramfoundpositiveviewsonitspolicyandculturalrelevance.Theevaluationfoundthatthattherewasaneedfortheprogramtoworkwithmorebalancebetweenintendedoutcomes.17Thismeansscalingupworkinwomen’seconomicempowermentandwomen’sleadershipanddecisionmaking,selectingpartnershipsthatcancontributetopromotingtheidentityoftheprogramandpromotingPacificleadershipandownershipthroughaconcertedstrategyandinaconsistentway.

Progressagainsttheobjectiveeffective regional institutionswaslessthanexpectedduetosignificantfinancialchallengesfacedbyparticularregionalpartners.Thesechallengeshavenecessitatedsavingsanddelayedrecruitment,financialreformsandprioritisationofworkprograms.Inresponse,Australiaishelpingtheseorganisationsaddresstheirfinancialchallengesbyprovidingtechnicalandotherassistance.

17 For a copy of the evaluation, refer to Pacific Women Shaping Pacific Development: 3 year evaluation report and management responseathttp://dfat.gov.au/about-us/publications/Pages/pacific-women-three-year-evaluation-report-mgt-resp.aspx.


Progressagainsttheobjective healthy and resilient communitieswasalsolessthanexpected.Pacificislandcountriesarenotusingavailableclimatesciencetoensurerisk-informeddevelopment.Thishasimplicationsforhowresilientcommunitiesarewhenimpactedbyclimate-relatedweatherevents.Inhealth,theburdenofnon-communicablediseasesisincreasing,andcommunicablediseaseoutbreaksarecommon.Unmetneedsforfamilyplanningarehighandineightcountriestheadolescentbirthrateisincreasing.Whiletherehavebeenimprovementsacrossinvestmentsinthehealthsector,furtherworkisrequiredtostrengthencoordinationoftheseinvestments.Inresponse,theprogramwillenhancecoherencebetweenbilateral,regionalandglobalinvestmentsthroughtherolloutofanewPacificHealthStrategy(2018-30).FocuswillalsobegiventostrengtheningregionalhealthgovernanceforissuesthatrequireregionalcollaborationaswellastoscalingupassistancetomakePacificislandcountryhealthsystemsmoreefficientthroughimprovedpublicfinancialmanagementsupport.

South-East and East AsiaSouth-EastAsiaisadynamicanddiverseregion,withextensivenaturalresources,ayoungpopulationanddiversifiedeconomy.Itisoneofthefastest-growingregionsintheworld,witheconomicgrowthforecasttobe5.2percentin2018,upfrom4.9percentin2016and5.1percentin2017.18Withaveragegrowthoffivepercentoverthepast15years,theregioncontinuesasoneofthemaindriversofglobaleconomicactivity, anchored by the steady rise in domestic demand for goods and services, an improvement in exportsandanexpandingmiddleclass.19Thisfavourableeconomicoutlookisalsosupportedbyaccommodativemonetarypolicyandexpansionaryfiscalstancesacrossmostcountries.20 Private investmentisexpectedtoremainthekeydriverofgrowthintheregion.21

Notwithstandingthis,South-EastAsiafacesseveraldevelopmentchallengesthatneedtobeaddressedtoachieveitsgrowthpotentialandtopromoteamoresustainedandinclusivedevelopmentpath.Largenumbers of people continue to live in poverty, and inequities persist, including a high degree of gender inequality. Women’s access to reliable maternal and neonatal facilities still needs to improve across South-East Asia. The region faces pressing social and environmental problems, including climate change. Economicinstitutionsandgovernanceremainvulnerabletoeconomicshocksandwithlaggingproductivitygrowtharepreventingcountriesfromfullyleveragingglobalandregionaleconomicopportunities.22

In2016-17,22.1percentoftotalAustralianODAwasdirectedtoSouth-EastandEastAsia.IndonesiaremainedthelargestrecipientofAustralianODAintheregion,representing40percentofregionalexpenditureand8.9percentoftotalAustralianODA.

18 The World Bank in East Asia Pacific(2018),http://www.worldbank.org/en/region/eap/overview.

19 OECD, Active with Southeast Asia,(2017).

20UnitedNations, World Economic Situation and Prospects 2018,(2018).

21 UnitedNations,World Economic Situation and Prospects 2018,(2018).

22 UnitedNations,Economic and Social Survey of Asia and the Pacific 2017,(2017).


Table 4: Total Australian ODA by country program: South-East and East Asia, 2016-17

Country Program

2015–16 2016-17

($m) ($m)

Indonesia 387.0 360.1

Timor-Leste 96.9 92.7

Cambodia 92.0 91.8

Vietnam 91.0 94.3

Philippines 85.6 87.5

Myanmar 84.5 87.6

Laos 44.6 40.8

Mongolia 10.2 9.8

Regional East Asia23 30.9 25.8

East Asia Total 922.7 890.5

Figure 17: Total ODA by investment priority area: South-East and East Asia, 2016-17





Education29%

Health9%


23 TheRegionalEastAsiaprogramismadeupofseveralprograms,includingtheASEANandMekongprogram.


Program quality

South-EastandEastAsiancountryandregionalprogramsmadegoodprogressagainstobjectiveswith79 per centontrack(Figure18),higherthanlastyear.Whilenoobjectiveswereratedasoff-track,21 per centofobjectiveswereassessedasatrisk(progresslessthanexpected).Theperformanceofeachcountryagainstprogramobjectivesissetoutbelow.Progressagainstcountryandregionalprogramperformancebenchmarksimprovedonlastyearwith74percentofperformancebenchmarksachievedand24percentofbenchmarkspartlyachieved.

Figure 18: Progress against program objectives: South-East and East Asia, 2016-17

Indonesia Philippines Vietnam Timor-Leste*

On track At risk

Myanmar Cambodia Laos East AsiaRegional

8 2 3 5 3 2 1 2

32 2

7

32 2 2

1 1

2

1 1

* In 2016-17, the Timor-Leste country program reported against program outcomes, which are typically greater in number than program objectives.


Figure 19: Progress against performance benchmarks: South-East and East Asia, 2016-17

Indonesia Philippines Vietnam Timor-Leste Myanmar Cambodia Laos East AsiaRegional

8 2 3 5 3 2 1 2


8

8

3

1

8

3

5

9

23

3

2

2

2

11

TheperformanceofaidinvestmentsinSouth-EastandEastAsiaexceededthatoftheaidprogramasawholeonallcriteria(Figure20).Resultsforeffectiveness,efficiency,genderequality,monitoringandevaluation,andsustainabilitywerehigherthanlastyear.Notallcountryandregionalprogramsachievedthegenderequalitystrategictargetandwillbeworkingtoimproveoutcomesagainstthistargetin2017-18.Allfiveinvestmentsidentifiedasrequiringimprovementin2015-16eitherimprovedtheirperformancein2016-17orwerecompleted.Fourinvestmentswereidentifiedasrequiringimprovementbasedon2016-17AidQualityCheckresultsandmanagementactionplanshavebeenputinplaceforongoing investments.


Figure 20: Aid investment performance: South-East and East Asia, 2016-17

East Asia Whole of aid program

Gender equality

Sustainability


Efficiency

Effectiveness

Relevance


90

78

77

97

85

90

96

88

90

98

92

92

ThethreeobjectivesoftheIndonesiaprogramwereassessedasontrackin2016-17.Theseobjectivesrelated to economic institutions and infrastructure, human development, and governance. Many achievementsmadein2016-17relatedtotheintroductionoflawsandregulationsandtheadoptionofnewwaystoallocategovernmentspendingorsystemsthathelppeopleaccessgovernmentservices.Forexample,AustraliasupportedIndonesiatotargetelectricitysubsidiestothepoorest40percentofhouseholds,savingtheGovernmentofIndonesiaanestimated$1.6billionin2017.EvaluationfindingsconfirmedstrongresultsfrominvestmentssupportingIndonesiaprogramobjectives.Forexample,anindependentevaluationoftheIndonesiaInfrastructureInitiative($227.5million;2007-17)founditdeliveredhigh-qualitytechnicalassistancealthoughwhetherreformsandinnovationswillbesustainedisnot yet clear in all cases.24 An independent completion report for the Australia-Indonesia Education Partnership (AEP) found that it improved education access in many of Indonesia’s remotest areas, contributed to better school management and strategies to improve education quality in schools and madrasah(Islamicschools),andsupportedbetterqualitydialogueanddecision-makinginimportantareas.25However,implementationoftheAEP’sprofessionaldevelopmentcomponentwasdelayedand didnotdeliverthefullsystemicimprovementsexpected,andtheAEPdidnotengageeffectivelywithdistrictgovernmentstoaddresseducationchallenges.Lessonslearnedarebeingtakenforwardinneweducation programs.

24 For a copy of the evaluation and management response, refer to Indonesia Infrastructure Initiative Program: Impact Assessment Team Mission 3 Report and Management Response at http://dfat.gov.au/about-us/publications/Pages/indonesia-indii-program-mission-3-report.aspx.

25 For a copy of the completion report and management response, refer to Australia’s Education Partnership with Indonesia: Independent Completion Report and Management Response at http://dfat.gov.au/about-us/publications/Pages/indonesia-education-partnership-completion-report.aspx.

http://dfat.gov.au/about-us/publications/Pages/indonesia-indii-program-mission-3-report.aspx

http://dfat.gov.au/about-us/publications/Pages/indonesia-indii-program-mission-3-report.aspx

http://dfat.gov.au/about-us/publications/Pages/indonesia-education-partnership-completion-report.aspx

http://dfat.gov.au/about-us/publications/Pages/indonesia-education-partnership-completion-report.aspx


ThethreeIndonesiaprogramobjectivesareunderpinnedbyelevenoutcomeareaswitheightoutcomeareasassessedasontrack.Progressagainsttheoutcomearearelatingto more jobs and higher incomeswasassessedaslessthanexpectedbecausewhilethetargetforincreasingfarmhouseholds’incomeswasexceeded,onlymodestprogresswasachievedonreformsthatmakeiteasiertoinvestanddobusiness.Inresponse,theprogramin2017-18willsupportIndonesia’seffortstoattractforeigninvestmentandreducebarrierstobusinessandtradebymakingiteasiertoregisterabusinessandobtainconstructionpermits. Progress against the outcome area relating to improved literacy and numeracy for childrenwaslessthanexpected.Inresponse,theprogramwilldevelopmodelsforteachingfoundationalliteracyandnumeracy,formativeassessmentandinclusiveeducationwhichcanbescaledupbygovernmentandexpandtheevaluationofKIATGuru–apilotprogramdesignedtoimproveeducationqualityinremoteareasbylinkingteacherperformancetoincentivepayments–from10to33sub-districts.Progressagainstthe outcome area relating to marginalised groups can advocate for and access basic services waslessthanexpectedbecauseimplementationofIndonesia’snewDisabilityLawwaslimitedin2016-17.Inresponse,theprogramwilladvanceIndonesia’sdisabilityagendabysupportingtheNationalHumanRightsActionPlan.TheprogramwillalsocontinuetofunddisabledpersonsorganisationsworkingdirectlywithgovernmenttoimplementtheDisabilityLawandtomakesurethatprogressagainstitsimplementationcan be measured.

For the Philippines,twoofthreeprogramobjectiveswereassessedasontrack.Theserelatedtogovernance and improving conditions for peace and stability. An independent evaluation of the Philippines-AustraliaHumanResourcesandOrganisationalDevelopmentFacilitydeliveredin2016-17foundthattheinvestmenthadbeeneffectiveincontributingtoamorecompetentandefficientpublicservice.26 In relation to the improving conditions for peace and stability objective,astrategicreviewoftheBuildingSustainableInstitutionsandCommunitiesinBangsamoroinvestmentfoundithadbeeneffectiveatbuilding constituencies in support of the peace process.27 Progressagainsttheobjectiverelatedtoenhancing the foundations for economic growthwaslessthanexpected,reflectingslowerthananticipatedprogressonthreebenchmarks.Thosebenchmarksrelatedtodesignandcommencementofnewinfrastructureandtradeprogramsaswellassupportforsocialprotectionreform.

In Vietnam,twoofthreeprogramobjectiveswereassessedasontrack.Theserelatedtoenabling and engaging the private sector for development and assisting the development and employment of a highly skilled workforce. Progressagainsttheobjectivepromoting women’s economic empowerment, including ethnic minorities wasassessedaslessthanexpectedduetodelaysinGovernmentofVietnamapprovaloftwoflagshipinvestments.Bothinvestmentsproposeanapproachtoimplementationthatrequiresflexibilityindesign,whichpresentschallengesforcompliancewiththeGovernmentofVietnam’snewOfficialDevelopmentAssistanceapprovalandmanagementrequirements.Despitethesechallenges,therewasgood progress in advancing the necessary approvals. Lessons learned have informed the approach for the approval of other program investments.

In Timor-Leste,sevenofnineprogramoutcomeswereassessedasontrack.Anindependentmid-termreviewofAustralia’ssupportfortheGovernmentofTimor-Leste’sNationalProgramforVillageDevelopmentfoundthatithadcontributedsignificantlytostrengthenedpersonnelcapacity,establishment of robust government systems, monitoring and evaluation and gender and social inclusion.

For the outcomes more women and girls are safe and empowered,progresswasassessedaslessthanexpectedduetodelaysingenderspecificprogrammingunderthePartnershipforHumanDevelopment. AreviewoftheEndingViolenceAgainstWomenprogramhighlightedthemagnitudeofthechallengesinvolvedtoreduceviolenceagainstwomen.Inresponse,theprogramwillcontinuepolicyadvocacyforincreasedfundingforsupportservicestosurvivorsofviolence,andwillprogresstherolloutofgender-

26 For a copy of the evaluation and management response, refer to Philippines Australia Human Resources and Organisational Development Facility: Evaluation Report and Management Response at http://dfat.gov.au/about-us/publications/Pages/phillipines-human-resources-organisational-development-facility-evaluation-report.aspx.

27 Foracopyofthereviewandmanagementresponse,refertoAustralia’s Support for Peace in Mindanao: Strategic Review and Management Response at http://dfat.gov.au/about-us/publications/Pages/philippines-strategic-review-of-australias-support-for-peace-in-mindanao.aspx.

http://dfat.gov.au/about-us/publications/Pages/phillipines-human-resources-organisational-development-facility-evaluation-report.aspx

http://dfat.gov.au/about-us/publications/Pages/phillipines-human-resources-organisational-development-facility-evaluation-report.aspx

http://dfat.gov.au/about-us/publications/Pages/philippines-strategic-review-of-australias-support-for-peace-in-mindanao.aspx

http://dfat.gov.au/about-us/publications/Pages/philippines-strategic-review-of-australias-support-for-peace-in-mindanao.aspx


specificprogramming.Fortheoutcomeimproved governance at subnational level,progresswasalsoassessedaslessthanexpected.ThisisbecauseastheGovernmentofTimor-Lesteplansfordecentralisationarestillevolving,theprogram’sresponsehasyettobedefined.Inresponse,theprogramwillcontinuetoengagewiththeGovernmentofTimor-Lesteontheplanneddecentralisationprocessandconsiderhowtheaidprogramcanbestsupportthisprocess.

For the Myanmarprogram,allobjectiveswereassessedasontrack.Theseobjectivesrelatedtohuman development, peace and stability and economic growth and government management. Of the nine performancebenchmarks,sevenwereachieved.Theprogramexceededthehumandevelopmentbenchmarkexpand and strengthen government schools grants programs and reduce drop-outs and repetition of poor students.AnindependentreviewfoundthatAustralia’shumanitarianassistancetoMyanmarhasbeeneffectiveinreachingover500,000peoplebetween2014and2017.ThereviewrecommendedAustraliadevelopamulti-yearstrategytoguidefundingforprotractedcrises.Progresstowardsthebenchmarksupport government and non-state actors to effectively engage in negotiations and dialoguewaspartiallyachieved,withtwoofthreetargetsmet.Progresstowardstheperformancebenchmarkstrengthen public financial management systems and improved fiscal transparencywasnotfullyachievedduetothelatereleaseofanextractiveindustryreport.

In Cambodia,twoofthreeobjectiveswereassessedasontrack.Theserelatedtoincreasing agricultural productivity and farmer incomes and better health and education outcomes. An independent evaluation of thefirstphaseoftheCambodiaAgriculturalValueChainprogramfoundthatadeliberate‘trialandlearn’approachledtheprogramtopursueasmallnumberof‘complete’irrigationschemes,whichweremoreexpensivetoconstructbutwereassessedtobesustainableoperationsincontrasttoearliermodels.28 These schemes have the possibility of achieving a systematic impact across agriculture in Cambodia. TheevaluationdididentifysomeshortcomingsinCAVAC’smonitoringsystems,whichmadeassessmentoftheadequacyofprogressandimpactdifficult.Progressagainsttheobjectiveimprovingaccesstoessentialinfrastructureremainsaslessthanexpectedduetoslowerthanexpectedprogressin2016onamajormulti-donorruralroadimprovementproject.Aremediationplanhasbeenputinplace.

In Laos,twoofthreeobjectiveswereassessedasontrack.Theserelatetoimproving human resources and a stronger trade regime and more competitive private sector.Progressagainsttheobjectivemore disadvantaged girls and boys complete a quality basic education wasassessedaslessthanexpected.Despitesomeachievementsagainstthisobjective,therewereconcernsaboutthedesign,scopeandtargetingoftheBasicEducationQualityandAccessinLaos(BEQUAL)initiative.Ithasbecomeclearthatitsdesigndidnotsufficientlyacknowledgetheinstitutionalconstraintsandsignificantdiversityacrossthecountry’seducationsector.Inresponse,aMidTermReviewofBEQUALin2017-18willhelparticulatewhetherandhowobjectivesandactivitiesneedtobemodifiedtoensureBEQUALachievestangibleimpactinthemostdisadvantaged classrooms.

For the ASEAN and Mekongprogram,allobjectiveswereassessedasontrack.Thisincludesenabling regional economic cooperation and inclusive growth and strengthening responses to trafficking and exploitation of migrant workers. Ofitstenperformancebenchmarks,ninewereachieved.AnindependentreviewoftheAustralia-AsiaProgramtoCombatTraffickinginPersonsfoundtheprogramwasdeliveringhighqualitycapacitybuildingworkandhadbuiltvaluablerelationshipswithkeyinstitutions.Theprogramisaddressingthreekeychallengesnotedbythereview:under-utilisationofnationalstaff,theslowrateofprogramexpenditureandanincreasedfocusonvictims.Thebenchmark, legal framework in place for pilot implementation of the Cross Border Transport Facilitation Agreement,wasonlypartlyachievedasonlyfourofthesixmemberstateshavesignedontotheagreement.Inresponse,theprogramwillworkwiththeremainingtwomembersduring2017-18sothatpilotoperationscancommence.

28 For a copy of the evaluation report, see Cambodia Agricultural Value Chain (CAVAC) Phase One evaluation at http://dfat.gov.au/aid/how-we-measure-performance/ode/strategic-evaluations/Pages/cambodia-agricultural-value-chain-cavac-phase-one-evaluation.aspx.

http://dfat.gov.au/aid/how-we-measure-performance/ode/strategic-evaluations/Pages/cambodia-agricultural-value-chain-cavac-phase-one-evaluation.aspx



South and West Asia, Africa, the Middle East and Other Regions

South and West Asia

SouthandWestAsiahasmorethan400millionpeoplestilllivinginextremepoverty.Manymore,particularlywomenandthoseworkingintheinformalsector,liveclosetothepovertylineandremainvulnerabletoeconomicandenvironmentalshocks.Limitedavailabilityofwatersupplies,increasingrelianceonimportedenergy,theneedtoproducemorefoodtofeedagrowingpopulation,theemergingimpactsofclimatechangeandpersistentgenderandotherinequalities,exacerbatethisvulnerabilityandarekeychallengesforpolicymakers.ConflictandinstabilityinWestAsiaservesasafurtherchallengetoAustraliaeffectivelyimplementingitsaidprogram.Inwhatwillcontinuetobeaparticularlychallengingenvironment, Australia can respond to some of these challenges and improve the livelihoods of people in theregionbysharingknowledgeandtechnicalexpertise.

Evenwithitschallenges,SouthandWestAsiahassignificantpotentialforeconomicdevelopment.Steadyeconomicgrowthintheregion,especiallyinIndia,willincreaseopportunitiesfortradeandinvestment,andcreatethepolicyspaceforfurthersupportgrowth-promotingreforms.

In2016-17,AustralianODAtoSouthandWestAsiawas$293million,representing7.3percentofAustralian ODA.

Table 5: Total Australian ODA by country: South and West Asia, 2016-17

Country Program

2015–16 2016-17

($m) ($m)

Afghanistan 88.1 86.8

Bangladesh 62.8 58.6

Pakistan 53.8 53.6

Nepal 35.2 30.3

SriLanka 29.2 31.1

Bhutan 9.2 6.4

Maldives 5.8 3.7

Regional South and West Asia 18.3 22.6

South and West Asia 302.5 293.2


Figure 21: Total ODA by investment priority area: South and West Asia, 2016-17





Education22%

Health8%


Africa, the Middle East and Other Regions

Sub-SaharanAfricaisadiverseregionwithmultipledevelopmentchallenges.However,manyofthekeyconstraintstoeconomicgrowtharesharedacrossthecontinent,includingskillsshortages;poorenablingenvironmentsforbusinessandgovernance;foodinsecurityandlowagriculturalproductivities;humanitariancrises;genderandotherinequalities.In2016economicgrowthwasatitslowestinover twodecades,ascommodityexportersadjustedtolowercommodityprices.SouthAfricaandoilexportersaccountformostoftheslowdown,whileactivityinnon-resourceintensivecountries–agriculturalexportersandcommodityimporters–generallyremainedrobust.29

Significantdevelopment,economicandsecuritychallengescontinuetoexistintheMiddleEast.ThePalestinianTerritories(consistingoftheWestBankandGazaStrip)inparticularisoneofthepoorestareasintheregion.Constraintstoeconomicdevelopmentincludecontinuedconflictandinstability,restrictionsonthemovementofgoodsandpeople,andalackofcertaintyoverterritorialbordersandnaturalresourcessuchaslandandwater.Approximately44percentofthepopulationofthePalestinianTerritories are refugees.

In2016-17,AustralianODAtoAfrica,theMiddleEastandotherregionswas$340.4million,representing8.4 per cent of Australian ODA.

29WorldBank, Global Economic Prospects,(2017).


Table 6: Total ODA to Africa, Middle East and other regions, 2016-17

Country Program

2015–16 2016-17

($m) ($m)

Sub-Saharan Africa 161.9 191.4

Middle East and North Africa 85.1 92.7

Palestinian Territories 43.3 42.7

Latin America and the Caribbean 13.3 13.6

Total 303.7 340.4

Figure 22: Total Australian ODA by investment priority area: Africa and the Middle East, 2016-17





Education17%

Health6%


Program quality

Eighty-two per centofSouthandWestAsiaprogramobjectiveswereassessedasontrackandnoobjectiveswereofftrack.Progresswaslessthanexpectedagainst18 per centofobjectives.Ninetyper centofperformancebenchmarkswereachievedand10percentofperformancebenchmarkswerepartiallyachieved.Allfourinvestmentsidentifiedasrequiringimprovementin2015-16eitherimprovedtheirperformancein2016-17orwerecompleted.Fiveinvestmentswereidentifiedasrequiringimprovementbasedon2016-17AidQualityCheckresultsandmanagementactionplanshavebeenputinplace for ongoing investments.


ForAfricaandtheMiddleEast,83percentofprogramobjectiveswereassessedasontrack.ProgresswaslessthanexpectedforoneobjectiveintheSub-SaharanAfricaRegionalprogram.Sixty-fourpercentofperformancebenchmarkswereachievedand27percentofperformancebenchmarkswerepartiallyachieved.Datawasunavailabletoassessperformanceonone(ninepercent)benchmark.Noinvestmentswereidentifiedasrequiringimprovement.Theperformanceofeachcountryagainstprogramobjectivesissetoutbelow.

Figure 23: Progress against program objectives: South and West Asia, Africa and the Middle East, 2016-17

On track At risk

Afghanistan Bangladesh Nepal Pakistan Sri Lanka SW AsiaRegional

Africa Regional

Palestinian Territories

2

2

3 2

3

1

3

2

1 1

1

1


Figure 24: Progress against performance benchmarks: South and West Asia, Africa and the Middle East, 2016-17

Afghanistan Bangladesh Nepal Pakistan Sri Lanka SW AsiaRegional

Africa Regional

Palestinian Territories


6 6

3 6

2

4

6

1

1 1

12

1

1

On various quality assessment criteria, Australia’s aid investments in South-West Asia performed in-line with,orfractionallylowerthan,theaidprogramasawhole(Figure25).Performanceongenderequalitywasassessedat77percent,onparwiththeaverageacrosstheaidprogram.Thisrepresentsasignificantachievementgiventhecontextualchallenges.ForAfricaandtheMiddleEast,mostinvestmentswereassessedasabovetheaidprogramaverageonaidqualityassessmentcriteriareflectingthattheseprogramsconsistofasmallnumberofhighlytargetedinvestments.Theexceptionwasperformanceagainstthesustainabilitycriterion.Programsneedtocontinueeffortsonensuringthepositiveeffectsandimpacts of their investments are ongoing to improve sustainability performance.


Figure 25: Aid investment performance: South and West Asia, Africa and the Middle East, 2016-17

SW Asia Africa and Middle East Whole of aid program

Gender equality

Sustainability


Efficiency

Effectiveness

Relevance


90

78

77

97

85

90

82

90

81

100

95

95

88

75

77

95

84

86

In Afghanistan,twoofthreeprogramobjectiveswereassessedasontrack.Theserelatetoempowering women and girls and building resilience and supporting at-risk populations.Progresstowardssupporting the Afghan Government to achieve economic growth and institute more effective and accountable governance wasassessedaslessthanexpected.ConflictinthecountryhashadimplicationsforAustralia’scapacitytosupporttheAfghanGovernmentimplementitsstate-buildingagenda.Governmentreformeffortshavealsobeenslowtoestablishandmanylargeprojectsareindecline.Againstthisbackground,theprogramislimitedinitsabilitytoinfluenceeconomicgrowthandeffectivegovernancedespiteachievingmostperformancebenchmarks.Inresponse,theprogramhasdecidedtodiscontinueitsPublic Financial Management of Afghanistaninvestment,andhasprovidedsupporttotheInstituteforStateEffectivenessasanalternativemeansofsupportingreformofAfghanistan’spublicfinancialmanagementandimprovingperformanceagainstthisobjective.

For the Bangladeshprogram,allobjectiveswereassessedasontrack.Theserelatetoimproving education and learning outcomes and building resilience. Support for the implementation of the Bangladesh Government’s National Security Strategy resulted in greater prioritisation of social protection by the BangladeshGovernmentinitsannualbudget.Sixofsevenperformancebenchmarkswereachieved.Theperformancebenchmarkrelatingtonumber of women and their households able to access social transfers waspartiallyachievedwith88,961women-headedhouseholdssupportedtoaccesssocialtransfersthroughtheBuildingResourcesAcrossCommunities(BRAC)andWorldFoodProgramme.Thiswasbelowthetargetof102,600householdsduetoashortfallinentrantstoanewphaseofaBRACprogram,withthestartofanewphaseandchallengeswithselectionmethodologies.Thesechallengeswithimplementinganewapproacharenotanticipatedtoimpactinthenextreportingperiod.

In Nepal,allobjectiveswereassessedasontrack.Theserelatetoexpanding economic opportunities, governance and policy implementation and human development.AnevaluationoftheBuildBackSaferSchoolsforAllprojectfoundthatithadcontributedsignificantlytoinclusiveearlyrecoveryineducation


and inrebuildingnewsaferschoolsforallfollowingtheNepalearthquakesin2015.30 Nepal’s transition to afederalstructurewillcontinuetoimpactonallinvestments.Whereaspreviouslytheprogramengagedwithgovernmentatthecentrallevel,therewillbeopportunitiestoengagewithlocalgovernmentinthenewfederalstructure.Determininghowbesttoengagewiththenewlevelsofgovernmentwillcontinueto be a priority for the program.

In Pakistan,twoofthreeobjectiveswereassessedasontrack.Theserelatetoinvesting in people with a focus on women and girls and supporting stabilisation and resilience. An independent evaluation of the PakistanChallengingGender-basedViolence(GBV)ProgramfoundthatoveralltheGBVProgramisprogressingwellagainstobjectiveswithevidenceofbothattitudinalandbehaviouralchangeatthecommunity level in targeted areas.31Progresstowardstheobjectivegenerating sustainable inclusive growth didnotmeetexpectationsduetoperformancebeinglessthanexpectedforanagriculturalresearchprogram and a trade policy program. Remediation plans are in place to improve the performance of these twoinvestments.ThePakistanprogramwillcontinuetofocusonimprovinggenderequalityperformanceandmeetingthetargetof80percentsatisfactorygenderratings,andwillbuildontheintegrationofdisabilityinclusivenessandadvocacyefforts.

For the Sri Lankaprogram,allthreeobjectiveswereassessedasontrack.Theserelatetoeconomic opportunities for the poor, supporting government to be more responsive to the needs of citizens and the private sector, and increasing gender equality.AnevaluationoftheCommunityForestryproject,whichsupportstheobjectiveofeconomic opportunities for the poor,foundthattheprojecthadcontributedtoincreasesinincomeforlocalpoormenandwomen.32Thiswasachievedthroughacombinationofdirectpaymentsforlabourworkanddiversificationofhouseholdeconomicactivitiesthroughtheestablishmentofnewmicroenterprisesandhomegardens.Progressagainsttheperformancebenchmarksupport government to be more responsive to the needs of citizens and the private sector waslessthanexpected.Whilst the aid program has supported the government to respond to the needs of people and business, satisfactionratingsweremixed.Inresponse,arevisedperformancebenchmarkbetterreflectingtheprogram’s contribution has been developed to measure performance in future years.

OfthetwoobjectivesintheSouth Asia Regional aidprogram,performanceagainsttheobjectiveofincreased regional connectivity through trade facilitation and infrastructure connectivitywaslessthanexpected.Despitesomegoodprogress,implementationoftheSouthAsiaTradeFacilitationProgram(SARTFP)wasslowerthananticipated.Inresponse,theprogramwillworkcloselywiththeWorldBanktoaccelerate SARTFP activity implementation and development of pipeline activities. Progress against the objectiverelatedtoincreased water, food and energy security to facilitate economic growth and improve the livelihoods of the poor and vulnerable (particularly women and girls)wasassessedasontrack,asallperformancebenchmarksrelatedtotheobjectivewereachieved.Thisassessmentwassupportedbythe2016annualreviewoftheSustainableDevelopmentInvestmentPortfoliowhichfoundthatover90percentofexpectedresultswereachievedorontracktobeingachieved.

In the Sub-Saharan Africaprogram,threeoffourobjectiveswereassessedasontrack.Theserelatetocontributing to leadership and human capacity development, enhancing agriculture’s contribution to sustainable and inclusive economic food security, and responding appropriately to humanitarian crises. Progressagainsttheobjective empower women and girls and improve gender equality outcomeswasassessedaslessthanexpected.Thiswasduetoonlypartialachievementofbenchmarksrelatingtosatisfactory performance of investments against gender equality criteria and an incomplete set of gender strategiesforallaidinvestments.Inresponse,theprogramwillfocusonensuringthatallongoinginvestmentsmeetthesebenchmarksin2017-18.

30 For a copy of the evaluation report, refer to Nepal Build Back Safer Schools for All project: final evaluation report at http://dfat.gov.au/about-us/publications/Pages/nepal-build-safer-schools-for-all-evaluation-report.aspx.

31 For a copy of the evaluation report and management response, refer to Challenging Gender-Based Violence in Pakistan Program: independent evaluation report and management response at http://dfat.gov.au/about-us/publications/Pages/pakistan-challenging-gender-based-violence-evaluation-report-management-response.aspx.

32 For a copy of the evaluation report, refer to Sri Lanka Community Forestry Program (SLCFP) at http://dfat.gov.au/about-us/publications/Documents/sri-lanka-community-forestry-program-icr.pdf.

http://dfat.gov.au/about-us/publications/Pages/nepal-build-safer-schools-for-all-evaluation-report.aspx

http://dfat.gov.au/about-us/publications/Pages/pakistan-challenging-gender-based-violence-evaluation-report-management-response.aspx

http://dfat.gov.au/about-us/publications/Pages/pakistan-challenging-gender-based-violence-evaluation-report-management-response.aspx

http://dfat.gov.au/about-us/publications/Documents/sri-lanka-community-forestry-program-icr.pdf

http://dfat.gov.au/about-us/publications/Documents/sri-lanka-community-forestry-program-icr.pdf


Progress in the Palestinian Territories forobjectivesrelatingtoimproved public financial management and a more competitive agricultural economy and access quality basic services wasassessedasontrack,reflectingtheachievementofmostperformancebenchmarksforalimitednumberoftargetedinvestments.Progresstowardsthebenchmarkrelatingtoeducationwasonlypartiallymet,asthenumberofGrade4femalestudentsinUNReliefandWorksAgency(UNRWA)schoolsperformingatorabovetheexpectedlevelinmathematicsdeclinedby1.1percent(to34.1percentfroma2013baselineof35.2percent).


Chapter 3 Global program performanceIn addition to country and regional programs, Australia’s aid funding is also provided through a number of global programs. This includes core funding33 that is provided annually to multilateral development organisations.Australia’scontributionstotheseorganisations,togetherwiththosefromotherdonors,allowthemtoleverageadditionalresourcesintotheIndo-PacificregionandpursueagreedprioritiesatascalethatwouldnotbepossibleforAustraliatoachievebyitself.Australia’smembershipof,andcontributionsto,multilateralorganisationsallowAustraliatoleveragethoseorganisations’finances,influence,technicalexpertise,conveningpowerandroleinsettingglobalpolicynormsandstandards. ThisservestoextendanddeepentheimpactoftheAustralianaidprogram.

Thischaptersummarisesthefindingsofassessmentsofmultilateralorganisationscompletedin2017.Australia completes a rolling program of multilateral performance assessments for multilateral organisations receiving core development funding from the Australia Government.34In2017,multilateralperformanceassessmentswerecompletedfortheGlobalEnvironmentFacility,GlobalPartnershiponEducationandtheCommonwealthSecretariatTheseassessmentsconfirmedtheseorganisationsareperformingsatisfactorilyoverallandtheirworkalignsadequatelywithAustralia’spriorities.Thischapteralso reports on the performance of the Australian NGO Cooperation Program.

33 Corefundingreferstofinancialsupportthatcoversbasic‘core’operationalandadministrativecostsofanorganisationandisnotearmarkedtospecificactivities.

34 MultilateralPerformanceAssessments(MPAs)werecompletedin2015forAsianDevelopmentBank,UNICEF,UNDP and WFP. Summary information is available in the Performance of Australian Aid 2014-15,pp.54-56accessedat: http://dfat.gov.au/about-us/publications/Pages/performance-of-australian-aid-2014-15.aspx.MPAswere completed in 2016fortheWorldBankGroup,UNFPA,UNISDR,UNRWA,UNWomen,WHO,andtheGlobalFundtoFightAids,TuberculosisandMalaria.SummaryinformationisavailableinthePerformanceofAustralianAidreport2015-16,pp.43-51accessedat:http://dfat.gov.au/about-us/publications/Pages/performance-of-australian-aid-2015-16.aspx.

http://dfat.gov.au/about-us/publications/Pages/performance-of-australian-aid-2014-15.aspx

http://dfat.gov.au/about-us/publications/Pages/performance-of-australian-aid-2015-16.aspx


Multilateral Performance AssessmentsGlobal Partnership for Education

Overview of performance35

Results and Impact Adequate Partnership Behaviour Good

Relevance and Alignment Good Organisational Capacity Good

Value for Money Adequate Organisational Governance Good

Summary of assessment

TheGlobalPartnershipforEducation(GPE)continuestoperformwellasamultilateralpartnerforAustralia,demonstratingstrongalignmentwithAustralianaidpolicyprioritiesandanongoingcommitment to reform. GPE is particularly strong on collaboration, partnership behavior and stakeholderengagement.Itsinclusivegovernancemodelhelpsensureobjectivesandobligationsareshared among its partners, including DFAT.

GPE’sneeds-basedfundingmodelsystematicallygearsfinancingallocationsandactivitiestowardthepoorest(whilealsoincentivisingresults,viaresults-basedpayments,andrequiringanincreaseddomesticeducationspend).ThirtypercentofGPEimplementationgrantswenttotheIndo-Pacificregionin2016.

Globally, the education sector continues to face challenges in sourcing data to monitor learning results.Atpresent,itcanbedifficulttotrack,aggregateandlinkresultsdirectlytoGPE’swork,andensure governments have access to the data and information needed for good policy and planning. GPEisfocusedonfillingthegapsandincentivisingandsupportingbetterdataqualityfordevelopingcountry partners.

Australia has encouraged GPE to better institutionalise its approach to innovation, including by workingwithnon-traditionaldevelopmentpartners.WhileitsoverallobjectivesforprivatesectorengagementarealignedwithAustralia’sobjectives,implementingeffectiveandstrategicprivatesectorengagementhasbeenchallengingforGPE(momentumisbuildingamongGPE’sstakeholdersfor this to improve).

GPE provides comparatively good value for money in Secretariat operational and management costs. WorkisunderwaytoensureGPE’sin-countrymodelismaximisingthebenefitsofthepartnershipanddeliveringsustainablecapacitydevelopmentin-country.Thisincludesgreaterdifferentiationingrantmakingrequirements(basedongrantsizeandrisk),includingforPacificIslandcountries,whichcould help minimise transaction costs and help to maintain the primary focus on systems strengthening and results.

GPE’snewFinancingandFundingFramework,toberolledoutfrom2018,containsaseriesofpromisingnewinitiativestobetterleverageGPEresourcesforeducationimpactandfullyrealiseitsstrategicvision.AustraliawillcontinuetoworkwithGPEtoensuretheseandotherreformsarefullyoperationalised.

35MultilateralPerformanceAssessmentsuseasix-pointratingscaletorateperformance.Ratingsof6(verygood),5(good)and 4 (adequate) are considered satisfactory ratings; ratings of 3 (less than adequate), 2 (poor) and 1 (very poor) are considered unsatisfactory.


Global Environment Facility36


Results and Impact Good Partnership Behaviour Adequate

Relevance and Alignment Adequate Organisational Capacity Good

Value for Money Good Organisational Governance Good


The Global Environment Facility (GEF) is a long-standing and trusted partner of the Australian Governmentthatworkstoaddressthemostchallengingglobalenvironmentalissues.Itscurrentstrategy(GEF2020)sharesanumberofobjectiveswithDFAT’saidpolicy(Australian aid: promoting prosperity, reducing poverty, enhancing stability),including:contributingtopovertyreductionandeconomicgrowththroughinvestmentinsustainableenvironmentalmanagement;leveragingexternalpublicandprivatesourcesoffunding;and,supportingtheneedsofSmallIslandDevelopingStates,includinginthePacific.

The MPA found that the GEF continues to deliver strong results to improve the global environment, and hasbeenparticularlyeffectiveinsupportingclimatechangeadaptationandmitigationactivities.GEFhasincreasedthenumberofprojectscoveringmultiplefocalareasinrecentyears,whichwerefoundtoaddress global environmental issues more holistically and create impact at scale.

GEFhasasubstantialportfolioofactivitiesintheIndo-Pacific,andisdeliveringstrongresultsintheregion.IntheindicativeSystemforTransparentAllocationofResources(STAR)allocationsforGEF-6,countriesintheIndo-PacificregionwillreceiveUS$918million,or39.3percentoftotalcountryallocations.GEFhasastrongtrack-recordofleveragingpublicandprivatesectorresourcestoco-financeprojectsandhasaco-financingratioof7.5to1toGEFfundinginGEF-6todate.Ithastakenseveralstepsto mainstream its private sector engagement in recent years, including launching a pilot program for the use of non-grant instruments.

GiventhesubstantialprogressithasmadetowardsitstargetsandtheSecretariat’sstrongcommitmentto reducing management and operational costs, the GEF continues to represent value for money. The organisation has implemented initiatives in recent years to build capacities in cross-cutting areas such as results-basedmanagement,andhasdevelopedstrongtechnicalexpertiseacrossitsfocalareasandinitsScientificandTechnicalAdvisoryPanel(STAP).GEFisalsoservedbyahighlyproductivemonitoringandevaluationunit–theIndependentEvaluationOffice(IEO).

AsalargePartnershipwithanambitiousagendaandawiderangeofdifferentpriorities,itisattimeschallengingforGEFtoeffectivelyreflecttheprioritiesofallitsmembers.TheMPAfoundthattheGEFcoulddomoretostrengthenthequalityofitsstakeholderengagementduringtheprojectdevelopmentphaseandinongoingengagementwithdonorcountries.TheMPAalsorecognizedtheGEF’sinstitutionalcapacitiescouldbestrengthenedto:promotegenderequalityandmainstreamingatcorporateandprojectlevels;supportdisability-inclusivedevelopmentinitsprogramming;analyseandimproveoperationsinfragilestates;and,enhanceprivatesectorengagementandexpertisewithintheSecretariat.ThereisalsoscopetofurtheraligntheGEF’sprogrammingprioritieswithAustralianaidobjectives,particularlyinregardstostrengtheningprogrammaticactivitiesintheIndo-Pacificregion,andenhancingcomplementarityandcohesionwithotherclimatefinanceinstitutions,includingtheGreenClimate Fund.

GEFisreviewingitspoliciesongenderandstakeholderengagementtofurtherstrengthenitsworkinthesepriorityareas.ItisalsoworkingtoenhanceprivatesectorengagementandexpertiseasapriorityelementofGEF-7.GEFhasreaffirmeditscommitmenttocloseandcontinuingdialoguewithAustraliatoachieve these goals.



CommonwealthSecretariat


Results and Impact Adequate Partnership Behaviour Adequate

Relevance and Alignment Adequate Organisational CapacityLess than Adequate

Value for Money Less than Adequate

Organisational Governance Less than Adequate


TheCommonwealthSecretariat(ComSec)istheprincipalinter-governmentalagencyfortheCommonwealth.AustraliasupportstheCommonwealthtopromotehumanrights,democraticnormsand good governance.

TheMultilateralPerformanceAssessment(MPA)gaveComSecratingsof4outof6onthreeassessmentcriteria:ResultsandImpact;RelevanceandAlignment;andPartnershipBehaviour;and3outof6onthreecriteria:ValueforMoney;OrganisationalCapacity;andOrganisationalGovernance.ConsistentwithrecentDFIDevaluations,ComSecreceivedanoverallratingofadequateforthe2013-14to2016-17period.

ThreemajorfactorsaffectedComSec’sratings:ComSecisnotprimarilyadevelopmentorganisation,weakeningitscapacitytoaddresssomedevelopmentcriteria;disruptioncausedbyleadershipturnover,corporaterestructureandbudgetcuts;andexistingsystemicissuesthatAustraliaexpectsComSectoaddressinthenextStrategicPlanperiod(2017-18to2020-21).

AustraliawillworkwiththeUKtomeasureComSec’sprogressonresolvingtheseissues–enhancedtransparency;bettervalueformoney;andbetterresults-basedmanagementandbudgeting–usingtheperformanceagreementtheUKconcludedwithComSecinearly2017.ComSecmustmeettheperformance criteria in the agreement to receive future tranches of DFID funding. It has so far qualifiedforthefirstthreetranchesoffunding.Giventhistrajectory,andintheinterestsofavoidingadministrative duplication and additional strain on ComSec’s resources, a separate agreement for Australian funding is not required at this stage.

SinceAustralia’slastmajorreviewofComSecin2012,theorganisationhasmadegoodprogressinreducingitsnumberofongoingprojects–animportantshiftforthesustainabilityofitsworkprogram.Ofthesixoutcomesfromthe2013-14to2016-17StrategicPlan–Democracy(RuleofLaw);PublicInstitutions(Governance);SocialDevelopment;Youth;Pan-CommonwealthDevelopment;andDevelopmentofSmallandVulnerableStates–ComSecachievedthestrongestresults from its democracy, public institutions, youth and small states programs.

The MPA highlighted the value of ComSec’s election monitoring missions, demonstrated by an upsurgeindemand,includingfromcountrieswheretheCommonwealthhasnotpreviouslyobservedelections.ComSecmadestrongeffortstoprogressactivitiesintheIndo-Pacific,includingthedeploymentofspecialisedadviserstoassistwithlegalandtradeissues.ComSeccontinuedtomaintainandforgestrongrelationshipswitharangeofdevelopmentpartnersandinternationalbodies,andtoutiliseitsextensivenetworkstopromoteSouth-SouthandNorth-Southcooperation.ComSec also made gains in areas such as results-based management; innovation; budget allocation and value for money mechanisms.



Australian Non-Government Organisation Cooperation ProgramThe Australian Non-Government Organisation Cooperation Program (ANCP) recognises the unique strengthsAustralianNGOsbringtodevelopmentactivitiesandAustralia’soveralleffortstoreducepoverty.

ReflectingthecontributionsreceivedfromtheAustraliancommunity,thefootprintoftheANCPextendsbeyondthereachofAustralia’sbilateralaidprogram.The2015OfficeofDevelopmentEffectiveness(ODE)EvaluationoftheANCPfoundthatthereisconsistencybetweenNGOs’ANCPprogrammingandtheAustralianaidprogram’sgeographicandsectoralpriorities.Thiscontinuestobethecasein2016-17.

In2016-17,54 AustralianNGOsworkedwith2,113in-countrypartnerstodeliver507projectsin58countriesthroughtheANCP.NGOsworkedinarangeofsectorsincludingeducation,health,waterandsanitation,governanceandeconomicdevelopmentreaching12.8 millionpeople.Sixty-seven per cent oftheseprojectsaddressedgenderissues,61 per centofprojectsaddresseddisabilityinclusionand 45 percentofprojectsinvolvedengagementwiththeprivatesector.TheANCPbudgetallocationwas$127.3 millionin2016-17,consistentwiththeallocationin2015-16.

There are three interrelated outcome areas that ensure ANCP NGOs are positioned to deliver on the overarchingANCPgoal:‘throughsupporttoaccreditedAustralianNGOs,improvethelivingstandardsandwell-beingofindividualsandcommunitiesindevelopingcountries.’

Outcome 1: Effective and value for money programmingOutcome 2: A diversity of NGOs draw on funding and expertise from a range of sources Outcome 3: Effective engagement with in-country partners.

TheANCPAidProgramPerformanceReportassessedprogresstowardsthesethreeoutcomeareasasontrack.Inrelationtoeffectiveandvalueformoneyprogramming,ANCPcontinuestoprovidevalueformoneythroughtheNGOmatch,useoflocalsystemsandcapacitybuildingofin-countrystaff,andeffectiveresultsontheground.ANCPNGOsmustmatch20percentoronedollaroftheirownfundsforeveryfivedollarsthattheprogramprovidesundertheANCP(1:5match).In2016-17,ANCPaffiliatedNGOscontributed$34.3toANCPprojects,exceedingthematchedfundingrequirementbysevenpercentunderthisoutcomearea.

InrelationtoprogresstowardsadiversityofNGOsdrawonfundingandexpertisefromarangeofsources,theflexiblenatureoftheANCPmakesitidealforleveragingadditionalfundsfromothersources(includinginternationalnetworks,donorsandtheprivatesector).In2016-17,379projects(74percent)received funding from other sources to the value of $31.9 million.

TheANCPiscontinuingtoworkonimplementingrecommendationsfromthe2015ODEevaluation,whichincludedclarificationoftheroleofDFATPostsinthemanagementoftheprogram.InaNovember2016survey,100percentofANCPfocalpointsatPostssupportedthedevelopmentofapolicydocumenttoguidePosts’engagementwiththeprogram.ANCPisintheprocessoffinalisingthedocumentandhasbeguninformallyguidingsignificantlyincreasedengagementbyPostsintheoversightoftheANCP.


Chapter 4 Sector and thematic performanceThischapterbringstogetherperformancedataforthesixpriorityareasofinvestmentundertheAustralianGovernment’saidpolicyaswellasdisability-inclusivedevelopment.38 In previous reports, the performanceofallinvestmentpriorityareaswasassessed.For2016-17,inadditiontoprovidingperformance data for all areas, the Performance of Australian Aidreporthasfocusedindepthontwoareas:healthandgovernance.Forthesetwoareas,theviewsofDFAT’sprincipalspecialistswhooverseetheportfolioshasbeensought.Otherinvestmentpriorityareaswillbeassessedinsimilardetailinsubsequentreports.

Figure26providesabreakdownofaidinvestmentsagainstprioritypolicyareasin2016-17.Whencomparedto2015-16figures,expenditureasaproportionofoverallaidexpenditureincreasedslightly forinvestmentsininfrastructure(upfrom16 per centto17 per cent),agriculture,fisheriesandwater (upfromeight per centtonine per cent),andeffectivegovernance(upfrom19percentto20percent).Expenditureoneffectivegovernancecapturesworkacrossarangeofinvestments,includinglawandjustice,anti-corruption,publicfinancialmanagement,leadership,andgenderequalityandwomen’sempowerment.

Expenditureineducationheldsteadyat17percent.Expenditureinbuildingresiliencealsoremainedsteadyat16%.Thelargestdifferencewasinhealth,whereexpendituredecreasedasaproportionoftheoverallaidprogramfrom14 per centin2015-16to11 per centin2016-17.Thisdecreasewaslargelydueto the changing priorities and nature of Australia’s engagement in several country programs in South-East and East Asia.

38 Investment performance information included in Chapter 4 refers to DFAT-funded investments only. Performance data for thegenderequalityandempoweringwomenandgirlsinvestmentpriorityareaisincludedunderStrategicTarget4inChapter 1 of this report.


Figure 26: ODA by investment priority area, 2016-17


General development support*10%



Education17%

Health11%


* ‘General development support’ includes action relating to debt, some research and scientific institutions and multisector development assistance that does not fall within other investment priorities.


Infrastructure, trade facilitation and international competitivenessAustraliaiscommittedtotacklinginfrastructurebottleneckstohelpcreatetherightconditionsforsustainableeconomicgrowthandtoenhancetradeandinvestmentopportunitiesacrosstheregion.Investments in this sector are guided by the Strategy for Investments in Economic Infrastructure.In2016-17,Australiainvested$704millionor17 per centofODAininfrastructure,tradefacilitationandinternationalcompetitiveness.Australia’sworkisstronglyalignedwiththeSDGsincludingZeroHunger(SDG2),AffordableandCleanEnergy(SDG7),DecentWorkandEconomicGrowth(SDG8),Industry,InnovationandInfrastructure (SDG9), Sustainable Cities and Communities (SDG11), and Partnerships for the Goals (SDG17).

Figure 27: Infrastructure, trade facilitation and international competitiveness investment performance, 2016-17

Infrastructure, trade facilitation Whole of aid programand international competitiveness

Gender equality

Sustainability


Efficiency

Effectiveness

Relevance


90

78

77

97

85

90

89

80

79

96

81

85

Australia’s infrastructure and trade facilitation assistance performed satisfactorily although results for effectivenessandefficiencywerelowerthantheaidprogramaveragein2016-17.Theeffectivenessresultof85percentwasalsolowerthanthefouryearaverageof89percent.Resultsforgenderequalityimprovedfrom76percentin2015-16to79percentin2016-17,justbelowthetargetof80percent.Particulareffortsweremadetosupportanalysis,designandstrategydevelopment,contributingtomoreeffectivegenderintegration.


Agriculture, fisheries and waterOptimisingthepotentialofagriculture,fisheriesandwaterforeconomicdevelopment,whileensuringsustainable use of resources for long-term prosperity, is one of the biggest challenges facing the Indo-Pacific.Australiaissupportingagriculturalproductivity,sustainablefisheriesmanagementandwaterresourcemanagement,aswellasaddressingimpedimentsthatpreventproducerslinkingeffectivelyintodomesticandinternationalmarkets.InvestmentsinthissectorareguidedbytheStrategy for Australia’s aid investments in agriculture, fisheries and water. Australia’s investments are directly supporting several of the SDGsincludingNoPoverty(SDG1),ZeroHunger(SDG2),CleanWaterandSanitation(SDG6),ResponsibleConsumptionandProduction(SDG12),ClimateAction(SDG13),LifeBelowWater(SDG14),andLifeonLand(SDG15).In2016-17,Australiainvested$350.3 millionornine per centofODAintheagriculture,fisheriesandwatersectors.

Figure 28: Agriculture, fisheries and water investment performance, 2016-17

Agriculture, fisheries Whole of aid programand water

Gender equality

Sustainability


Efficiency

Effectiveness

Relevance


90

78

77

97

85

90

96

88

79

96

88

96

Overall,Australia’sagriculture,fisheriesandwaterprogramsperformedwellin2016-17.Thepercentageofaidinvestmentsmeetingqualityassessmentcriteriaisonparwithorhigherthanwhole-of-aidprogramresults(Figure28).Effectivenessresultsimprovedcomparedto2015-16andexceededthefouryearaverageof84percent.Performanceongenderequalityimprovedcomparedto2015-16.Thereisaverybroadrangeofinvestmentsincludedinthisinvestmentpriorityarea.Itincludesseveralthateffectivelysupportwomen’seconomicempowermentandmobilisewomen’sleadership.However,italsoincludesinvestmentsthatfacesignificantchallenges,suchaspartneringwithregionalandresearchorganisationsthatlackgenderstrategiesandexpertise,andfocusingonhighlyspecialisedagriculturalresearchwhereidentifyinggenderobjectivescanbedifficult.


Effective governance: policies, institutions and functioning economiesIn2016-17,Australiainvested$802.9 millionor20 per centofODAtosupportmoreeffectivegovernanceinpartnercountries,makinggovernancetheAustralianaidprogram’slargestsectorinvestment.DFAT’sgovernanceworkisguidedbyEffective Governance: Strategy for Australia’s aid investments. Australia’s assistancehasadirectimpactontheSDGsDecentWorkandEconomicGrowth(SDG8),ReducedInequalities(SDG10),Peace,JusticeandStrongInstitutions(SDG16),andPartnershipsfortheGoals(SDG17).

Achievementsin2016-17included:

• Providinglogistics,policyandtechnicaladvicefortheconductofcredibleelections,includingthe2017elections in PNG

• Increasing transparency in government by supporting the implementation of freedom of information laws,includingthroughtheUN-PacificRegionalAnti-CorruptionProgram’sworkinVanuatu

• ConflictresolutionandviolencereductionthroughpeacesupportprogramsinMyanmar,thePhilippines and the Autonomous Region of Bougainville

• ProvidingtheGovernmentofIndonesiawithresearch-basedevidencetosupportbetterpolicydecision-makingthroughtheKnowledgeSectorInitiative

• Contributingtoglobaleffortstopreventthedestructiveandillegaltradein“conflictdiamonds”throughAustralia’schairmanshipoftheKimberlyProcessin2017.

Figure 29: Effective governance investment performance, 2016-17

Effective governance Whole of aid program

Gender equality

Sustainability


Efficiency

Effectiveness

Relevance


90

78

77

97

85

90

91

74

72

99

86

89

http://dfat.gov.au/about-us/publications/Pages/effective-governance-strategy-for-australias-aid-investments.aspx


Overall,Australia’sinvestmentsineffectivegovernanceperformedwellin2016-17,althoughresultsforgenderequalityandmonitoringandevaluationwereagainlowerthantheaidprogramaverage.Theeffectivenessresultof89percentequalsthefouryearaverageforthisinvestmentpriorityarea.Whilelawandjusticeinvestmentsgenerallydidwellongender,investmentsworkingonpublicfinancialmanagement,publicsectorreform,andeconomicgovernanceexperiencedongoingchallengesinidentifying and addressing gender dimensions.

A2017ODEevaluationoflessonsfromAustralianelectoralassistanceconsidered30Australian-fundedinitiativesworthmorethan$135millionandspanningnationalelectionsinAfghanistan,Fiji,Indonesia,Myanmar,PapuaNewGuinea,SolomonIslands,Timor-LesteandTonga.39 The evaluation found that Australianassistanceiswell-regardedandhasmadeapositivecontributiontothequalityofelections.Italsoidentifiedwaysinwhichfutureelectoralassistancecouldbeimproved,suchasbyincreasingattentiontothewidergovernanceandpoliticalenvironmentineachcountry,longer-termplanning,ensuringtimelyandinclusiveassistance,andbetterharnessingAustralia’sconsiderableexpertise.DFATisusingtheevaluation to inform more coordinated electoral assistance planning, strengthen guidance for program managers,andenhancecooperationwithpartnerssuchastheAustralianElectoralCommission.

DFATappointedanewPrincipalGovernanceSpecialist,DrSakuntalaAkmeemana,in2016tooverseeandguideworkinthesector.HerreflectionsonkeyinternationaldevelopmentsandchallengesandtheperformanceofDFAT’sgovernanceportfolioin2016-17areprovidedbelow.

39 For a copy of the evaluation, refer to Making It Count: Lessons from Australian electoral assistance 2006-16 at http://dfat.gov.au/aid/how-we-measure-performance/ode/strategic-evaluations/Pages/making-it-count-lessons-from-australian-electoral-assistance-2006-16.aspx.

Global trends in governance

EffectivegovernanceinourpartnercountriesisanobjectiveofAustralia’sdevelopmentassistanceprogramandunderliesitsforeignpolicyambitionsforasecure,openandprosperousworld,withafocusontheIndo-Pacificregion.Indeed,overafifthofthedevelopmentassistanceportfoliocomprisesprogramsaimedatimprovingstatecapability,accountabilityandinclusiveness–fordevelopingandimplementingpolicy,deliveringpublicservices,growingtheeconomyanddistributingpublicwealth–andchangingtherelationshipsbetweencitizensandthestate.Governancealsounderpinsdevelopmenteffectivenessandprogramsinallothersectors,likeeducation,healthandinfrastructure,anddeterminestheextenttowhichtheywillachievetheirobjectives.Finally,addressinggovernanceliesattheheartofdealingwithfragilityandconflict.

AccordingtotheDepartment’sAidQualityChecks,governanceinvestmentshavebroadlyplateauedintermsofeffectiveness–performingjustbelowaveragefortheoveralldevelopmentassistanceportfolio. Many of the best performing investments in the governance portfolio have adopted more politicallyinformed,adaptivewaysofworkinganddemonstratingstrongresults.

Global trends, local practice

Globally,therehavebeenfundamentalshiftsinthinkingaboutgovernanceanddevelopmentoverthelastdecadethathaveimplicationsforboththeareaswetargetinourprogrammingandourwaysofworking.Thegoodgovernanceagenda”ofthe1990sputforwardasetofaspirationsforhowdevelopingcountryinstitutionsshouldlookandfunctionandasetofpolicyprescriptionsforgrowthanddevelopment.Today,wehaveamuchdeeperunderstandingofthecomplexityofinstitutionalchangeinourpartnercountries,andthecentralityofpowerandpoliticsinthedevelopmentprocess.Onmyfirstdayinthejob,IchairedtheAustralianlaunchoftheWorldDevelopmentReport2017,

http://dfat.gov.au/aid/how-we-measure-performance/ode/strategic-evaluations/Pages/making-it-count-lessons-from-australian-electoral-assistance-2006-16.aspx



theWorldBank’sflagshippublication,whichcapturesmanyoftheseinsights.Ithighlightsinstitutionalchangeasa“longgame”,ahistoricalprocessthatisoftenmessyandasymmetric,andisdependentonlocalcontext.Theprocessisincremental,withlimitedscopeforgreatleapsforward,exceptat“criticaljunctures”.

Thus,ourprogrammingnowhastobeaccompaniedbyahard-nosedrealismastowhatmaybepossibleandtoidentifyandrespondtotransformativeopportunitieswhentheyappear.Therecognitionthatreformeffortsmustbedrivenbylocalconstituenciesraisesachallengetotheinternationalcommunitytotargetpolicyexperimentationtodiscoverlocalsolutionstodevelopmentproblems.Wearemakingprogressinincorporatingapoliticallyinformedapproachincludelocallybasedstaffwithgoodpoliticalintelligence,apreparednesstoengageina‘lowfootprint’mannerinovertlypoliticalprocessesandawillingnesstoacceptandlearnfromfailure.Interventionsneedtobeflexibleandadaptquicklytochangingdynamics. DFATistakingonthechallengebothinthewayit designs and implements development programs.

ThereareseveralprogramsinDFAT’sportfoliowhichwereearlyexamples–CoalitionsforChangeinthePhilippines,andVanuatu’sGovernanceforGrowth(GfG)program($52.3millionover2007-16;upto$20million2017-21).Thelatterprogramhaseffectivelyusedpartnershipsandinformalmechanisms to support institutional and regulatory reform, central government policy and decision-making,includingsensitiveandcontestedreforms–theliberalisationoftelecommunications,establishment of a utilities regulator and reform of revenue policy and administration.

AverydifferentexampleisProgramPeduli($30.9millionfrom2014-18),apartnershipwiththeGovernmentofIndonesiaandcivilsocietygroups,whodrawonlocalknowledgeandnetworkstosolvelocalproblemsinmakinggovernmentservicesandpoliciesresponsivetotheneedsofexcludedgroups. Operating in 21 provinces, it adopts an iterative approach to programming that is sensitive tothesuccessesandfailuresofactivitiesandthechangingpoliticalandsocialcontext.In2017,Pedulireachedalmost8,000marginalisedpeople,helpingmorethan6,000peoplereceivelegalidentitydocumentsintheformofmarriagecertificates,birthcertificatesandidentitycards.Theidentitydocumentshaveenabledmanyofthesebeneficiariestoaccesspublicservicesandsocialassistanceforthefirsttime.

AnotherexampleisProgramNabilaninTimor-Leste(currentphase2018-22$14million),whichworksonreducingviolenceagainstwomenandgirlsinTimor-Leste.ThePrimeMinisterofTimor-Lestehasgivenhissupporttoaddressthisdifficultissue,butitremainshighlysensitive.Staffhavedeveloped an approach to policy dialogue that is informed by social and cultural sensitivities. They takea‘lowfootprint’approach,ensuringtheprocessofchangingharmfulsocialnormsisledbydomesticleadersandorganisations.Onesuccesshasbeenintheadoptionofjudicialpracticesthatprotectvictimsandwitnessesduringtrials.

Flexibleinvestmentmodalitieslikefacilitiesaregoodoptionsforworkinginamoreiterativeandpoliticallyinformedway.Facilities,whensetupwell,incentiviseafeedbackloopbetweenlearningand implementation so that the program learns and changes course to ultimately deliver better outcomes. Increasingly,DFATprogramsareintroducingregularprocessestoconsiderchangesincontextandperformance,andadjusttheprogramaccordingly.Forinstance,amonitoringandevaluationsystemassistsAustralia’sprogramsinTimor-Lestetoundertakeregularlearningdialogues.TheCoalitionsforChangeprogramusesaPartnershipStrategicPaneltocreatea‘learningloop’.Commontoalloftheseprocessesisawillingnessofstaffandimplementingpartnerstolearnfromexperience,testtheirassumptionsandtrynewstrategies.However,withthisopportunitycomecertainriskstomitigate.Thereisarobustinternaldiscussionabouttheuseoffacilities,andadialoguewithmanagingcontractorsaboutlearningonhowweimprovedesignandimplementation.


Lookingahead

Thereremainopportunitiestobetterlinkourgovernanceprogrammingtothepotentialdevelopmenttrajectoriesofourpartners,dovetailinggovernancereformwithdomesticeconomic,socialandpoliticaldynamics. Iflocalcontextisallimportant,ourgovernanceprogrammingcannotbethesameforsmallislandstatesinthePacificwithsmallandgeographicallydispersedpopulationsastheyarewithourpopulousAsianneighbourswithalargeurbanizedmiddleclass,strongcivilsocietyandaproductivity-orientedprivatesector.Currentanalyticalworksuggestsnewmodelsofeconomicdevelopmentandpublicmanagementintheformercontext.Ourengagementsinlowincomecountriesandlowermiddleincomecountriesintheregionmayrequireaddressingtargetedcapacityandinstitutionalconstraintswhencoalitionsofstakeholdershavestrongincentivesinsupporting particular reforms. As countries become more capable and prosperous, and are no longer aid-dependent,thereneedstobeashifttoknowledge-basedassistancetosupportreform,tohelpthosecountriesmakebetteruseoftheirowndevelopmentfinance,andtothinkabouthowAustraliacanbeacrediblepartneronkeypolicyorinstitutionalreformissues.Thisthinkingneedstobefrontand centre of future integrated country strategies and Aid Investment Plans that guide choices for ourdevelopmentassistance.

We are also giving more attention to governance in sectoral programming, as core service delivery problemshavetheirrootsintheinstitutionalandpoliticaleconomycontext.Weareworkingwithcolleaguesinothersectorssuchashealth(Indo-PacificHealthSecurityCentre),education(DFATEducationConference)andwater(WaterforWomen)tounderstandthepoliticaleconomydimensionsofreformintheirsectors.Whatpoliticalandgovernancefactorsaffectthedeliveryofpublicgoodsandservices,includingincentivesandinterestsofkeybureaucraticactors? Whichaspectsofthepolicyenvironmenthinderandenablereform? Whattypesofsocial,economicandpoliticalforcesmightfacilitatechangeandwhataretheprospectsofcollectiveaction?

Lookingtothefuture,weneedtobeattunedtoashiftingworldorderandnewactorsandpotentialpartnersinthedevelopmentprocess.Thereareincreasingconcentrationsofwealth,innovation,powerandinfluenceinactorswhichdevelopmentassistancedoesnottypicallytarget: cities,corporations,individualsandtransnationalmovements. Weneedtothinkmorecreativelyaboutsuchengagements–forinstance,thecontemporarysignificanceofcitiesasconsequentialactorsonaglobalstageandpivotaltoreachingtheSDGsshouldnotbeoverlooked,inaregionwitheightoftheworld’stenmega-cities.

Finally,weneedtobetteruseourrelationshipswithmultilateralinstitutionsandourresearchpartnershipstotapintothevastlearningthatexistsongovernanceanddevelopment. DFATisamajorcontributortotheWorldBankandtheAsianDevelopmentBank,andhasawiderangeofresearchpartnershipswithinternationalacademicinstitutionsthatareattheforefrontofknowledgeaboutgovernanceanddevelopment. Weneedtousethosepartnershipsmoreeffectivelytoinformour aid programming and to leverage learning partnerships outside bilateral programming in order toinformourprojectsatcriticalpointsthroughthecycle.


Education and Health

Education

Educationenablesdevelopment;itcontributesdirectlytopovertyreduction,economicgrowth,reducedinequalityandenhancedstability.Australia’sinvestmentsineducationenableindividuals,includingwomenandgirlsandpeoplewithdisabilities,togaintheskillstheyneedtoobtainworkorgoontofurtherstudyand to lead productive lives. Australia’s approach is outlined in the Strategy for Australia’s aid investments ineducation2015-20.AustralianinvestmentsineducationdirectlysupportSDG4onQualityEducationaswellascontributingtotheachievementofotherSDGs,forexample,GenderEquality(SDG5).In2016-17,Australiaprovided$678.8or17percentofODAtoimproveeducationoutcomes.

Figure 30: Education investment performance, 2016-17

Education Whole of aid program

Gender equality

Sustainability


Efficiency

Effectiveness

Relevance


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Overall,Australia’seducationprogramsperformedwellin2016-17.Thepercentageofaidinvestmentsmeetingqualityassessmentcriteriaisonparwithorhigherthanwhole-of-aidprogramresults(Figure30).Theeffectivenessresultof95percentexceedsthefouryearaverageof91percentforthisinvestmentpriorityarea.Investmentsineducationcontinuedtoperformwellongenderequalityandwomen’sempowerment.Manyinvestmentshelppartnergovernmentsachievegenderparityinenrolmentandcompletion of basic education, and improve quality of education.

Health

In2016-17,Australiainvested$461.7millionor11percentofODAinhealth,includingnutritionandwater,sanitationandhygiene(WASH).Australia’sinvestmentinhealthisguidedbytheHealth for Development Strategy 2015-2020. The strategy has an overarching focus on building country-level health


systems that meet immediate needs and prepare for and respond to emerging public health threats. ProgresstowardsUniversalHealthCoverageandthecorrespondingSustainableDevelopmentGoal3–HealthandWellbeingforAll–areattheheartofthestrategy.Thestrategyalsorecognisesthatgoodhealth is both an end in itself and a contributor to economic development.

In2016-17,Australia’shealthinvestmentsmadeadifference. Australiacommitted$250millionfrom2016-20toGavi,thevaccinealliance,and$220millionfrom2017-19totheGlobalFundtofightAIDS,TuberculosisandMalaria–thetwoglobalinstitutionsfinancingthepreventionandtreatmentof majordiseasesthatdisproportionatelyaffectthepoorestandmostmarginalised.In2016,oursupporttotheGlobal Fund helped to support the testing and treatment of an additional 2.3 million people for tuberculosis; the provision of antiretroviral therapy to an additional 1.8 million people; and the distribution ofanadditional136 millionbednetstoprotectagainstmalaria. In2016,ourassistancetoGavihelpedtofundthevaccinationof62millionchildrenworldwide,bringingthetotalnumberofchildrenimmunisedwithGavisupporttoaround640million.ThroughourroleontheGlobalFundBoard,AustraliahelpedensureastrongprofileofinvestmentintheIndo-Pacificregionforthe2017-19replenishmentperiod.

Ataregionallevel,Australianaidiscontributingtoimprovedhealthsecurity.In2016-17,Australiaprovidednearly$4milliontotheMedicinesforMalariaVenture(MMV)andtheMenziesSchoolofHealthResearchtodevelopnewdrugs tofightmalariaintheregion.ThroughtheworkofMMV,thefirstnewdruginmorethan60yearstocombatrelapsingmalaria(Plasmodiumvivax)isontracktoberegistered bytheAustralianTherapeuticGoodsAdministration.Tosupporttherolloutofthisnewdrugacross theIndo-Pacificregion,theMenziesSchoolofHealthResearchandpartnersareprogressinganewpoint-of-carediagnosticdevicetotestforrelapsingmalaria.Thesenewtechnologieshavethepotentialtoradicallyreducetheprevalenceofmalariainourregion. AustralianexpertiseisattheheartoftheseachievementswiththeMMVcontributingalmost$33milliontoAustralia-basedmalariaresearchbetween1999and2016.

A long term commitment to regional health security

TheAustralianGovernmentspentaround$194millionbetween2006and2015helpingcountriesinAsiaandthePacificcombatemerginginfectiousdiseases(EIDs)suchasavianinfluenza,swinefluandrabies.A2017ODEevaluationofthisworkfoundthatAustraliahascontributedtosubstantialimprovements in surveillance and in the availability, timeliness and sharing of data on emerging infectious diseases across the region.40Whilstprogressinaddressingthehumanhealthrisksposedbyanimalswasmoremodest,Australiansupportdidestablisharegionaldiseasecontrolmodelforfoot and mouth disease in South-East Asia. Lessons from these investments over this period have informedthedevelopmentofthenew$300millionHealthSecurityInitiativefortheIndo-PacificregionannouncedbytheForeignMinisterinOctober2017.

The aid program supported the delivery of a range of essential health services in partner countries. In Cambodia,aninnovativeapproachtocontraceptivepromotionforfemalegarmentfactoryworkers(theinitiativeisknownas“Chat!”)hassuccessfullyempoweredwomentopreventunplannedpregnancies.Chat!hasmorethandoubledtherateofcontraceptionuse(fromabaselineof24.2%to48%)andtheuseofreproductivehealthservices(from8.6%to20%).InPakistan,129,558eligiblewomenandchildrenintargetdistrictsreceivednutritionrelatedservices,wellabovethetargetof77,970.Thisfigureincludes39,723women,8,695adolescentgirlsand81,140childrenincluding40,613boysand40,527girls.InIndonesia,througharangeofAustraliansupportedprograms,2.1millionwomenandchildrenaccessedhealthserviceshelping58,000childrenreachahealthyweight.

40 For a copy of the evaluation, refer to Evaluating a Decade of Australia’s Efforts to Combat Pandemics and Emerging Infectious Diseases in Asia and the Pacific 2006-2015: Are Health Systems Stronger?athttp://dfat.gov.au/aid/how-we-measure-performance/ode/strategic-evaluations/Documents/ode-peid-evaluation-final-report.docx.


Figure 31: Health investment performance, 2016-17

Health Whole of aid program

Gender equality

Sustainability


Efficiency

Effectiveness

Relevance


90

78

77

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Thepercentageofaidinvestmentsmeetingqualityassessmentcriteriaisonparwithwhole-of-aidprogramresultsforeffectivenessandsustainabilitybutloweronefficiency,monitoringandevaluation,andgender.(Figure31).Overall,therewasanincreaseintheassessedeffectivenessandsustainabilityofAustralianhealthinvestmentsfrom2015-16.Improvedsustainabilityisevidencedthroughtheincreasedfundingfrompartnergovernmentsforcorehealthpriorities.Forexample,inthePacific,theGovernmentsofSolomonIslandsandTongabothmetorexceededtheirhealthfinancingcommitments.Efficiencyresultsreflectvariablecapacityinpartnergovernmentsleadingtosomeimplementationdelays.InsomePacificprograms,progressagainsthealthsectorobjectivesfellshortofexpectations(PNG,Nauru,Samoa,Tonga,andVanuatu)despite,insomecases,effectiveperformanceattheinvestmentlevel(SamoaandTonga).

Performanceongenderequalitydeclinedbelow80percentforthefirsttime.Althoughmanyinvestmentscontinuetohelppublichealthsystemsdeliverservicestowomenandgirls,ithasbeendifficulttoaddressgender equality dimensions directly in areas such as health sector strengthening and health security. Strengtheningmonitoringandevaluationframeworksremainsapriority.

DFATappointedanewPrincipalHealthSpecialist,DrStephanieWilliams,inMay2017tooverseeandguideworkinthesector.HerreflectionsonkeyinternationaldevelopmentsandchallengesandtheperformanceofDFAT’shealthportfolioin2016-17areprovidedbelow.


Global trends in health

Infectiousdiseasesremainfrontandcentreinglobalhealth.In2016-17outbreaksofEbola,Marburg,pneumonicplague,cholera,andZikaremindedusoftheimportanceofsurveillanceandresponse, emergency preparedness and public health leadership. The focus on health security has broughtnewresources,alliancesandpoliticalwilltooutbreakplanningandresponse–includingAustralia’s$300mIndo-PacificHealthSecurityInitiative.Antimicrobialresistance(AMR)–whichcouldcause10milliondeathsayearby2050–hasremainedontheG2OandWorldHealthOrganizationagendas,andisnowthefocusofaUNInteragencyCoordinationGroupforAMR.Progress has stalled in malaria control and elimination41, and is glacial against tuberculosis.42 Closer tohome,drugresistanttuberculosisremainsprevalentinPapuaNewGuinea,whiledrugresistantmalariaintheGreaterMekongSubregionthreatensaresurgenceofwhatwasoncetheworld’sbiggestkiller.

Universalhealthcoverage(UHC)isasecondnotableglobalhealthambition,championedbytheWHOandreflectedintheSustainableDevelopmentGoals(SDGs).CountryprogresstowardUHCrequiresdomesticpoliticalsupportforhealthfinancingaswellasserviceprovisionreforms.SeveralcountriesintheIndo-Pacificregionhaveincreasedcoverageofhealthservicesforpoorandvulnerablepopulations,butout-of-pocketexpendituresremainhigh,deterringhealthcareaccess,andcausingcatastrophichealthexpendituresforindividualandfamilies.43 Such health costs hinder inclusivegrowth,includinginuppermiddleandmiddleincomecountries.ApushtowardUHChappensatatimewhenglobaldevelopmentassistanceforhealthisplateauingandincountriesinour region declining. This decline is often faster than countries can mobilise increased domestic resourcesforhealth.Oneimportantconsequenceisariseinout-of-pocketfinancing forhealth–feltmostbythepeopleleastabletopay–as70%oftheworld’spoorwholiveinmiddle-income-countries shoulder the burden of a premature transition from development assistance in health.

Wealsoseecontinuationofadecades-longfocuson“diseasespecific”efforts.Substantiallymorefundingisearmarkedforindividualdiseasesorspecificthemes(e.g.maternalandchildhealth, HIV/AIDS)thanischanneledtobroaderhealthsectorsupport.44Mostphilanthropicandkeyglobalfundsaretargetingspecificdiseasesforreductionorelimination,andareintroducingnewtechnologiesandperformanceincentives. Recentanalysisofthefinancingflowsofthe‘bigfour’globalhealthagencies–Gavi,theWorldBank,theGlobalFundandWHO–showsmorediscretionary funding and a reduction in more predictable core or longer-term funding; more definedmulti-stakeholdergovernanceratherthantraditionalgovernment-centredrepresentationanddecision-making;andmoremoneyandinitiativesforspecifichealthissuesratherthanbroaderhealth systems.45

The2017ForeignPolicyWhitePaperisinformedbyandacknowledgesthesetrendsinhealthfordevelopment. It recognises the importance of good health and strong and resilient health systems tosupportproductivesocietiesandeconomicgrowth,andalsorecognisesthatglobalcooperationisessentialtoguardagainstglobalhealthrisks.IfwearetoimplementtheWhitePaperandmeetthehealth-relatedSDGs,weneedtoactivelymanagethetensionbetweensupportforhealth

41WorldHealthOrganization,World Malaria Report 2017,(2017).

42WorldHealthOrganization,World Tuberculosis Report 2017,(2017).

43 Institute for Health Metrics and Evaluation (IHME). Financing Global Health 2016: Development Assistance, Public and Private Health Spending for the Pursuit of Universal Health Coverage.Seattle,WA:IHME,2017.

44 Ibid.

45 Clinton, C et al. Who pays for cooperation in global health? A comparative analysis of WHO, the World Bank, the Global Fund to Fight HIV/AIDS, Tuberculosis and Malaria, and Gavi, the Vaccine AllianceTheLancet,Volume390,Issue10091,324-332.


systemsandsupportforsinglehealthissues,suchasdiseases.Ofcourse,weareonepartofaglobaleffort:USD37billionisspenteveryyearindevelopmentassistanceforhealth,withAustralia’sannualhealthspendbeing$460million.

Challenges for the year ahead

Countryownershipmustremainattheforefrontofhealthsystemdevelopment,andthisrequiresa sustained commitment to country-led health system strengthening. Competing budgetary pressureshavemadethischallenging,butwehaveastrongbaseandgoodtrackrecordespeciallyinlongrunninghealthprogramsinthePacific.

Strongcountryownership,however,isnotsufficienttodeliverglobalpublicgoodsinhealthsuchasepidemicandpandemicpreparednessthatreducetheriskofdiseasescrossingborders.TheIndo-PacificHealthSecurityInitiativehasbeendesignedtogeneratepreciselythistargetedactionacrosstheregion.Thechallengeistodeliverontheambitiousstrategy,andfindtheintersectionsbetweencountry-ledandverticalapproachesinhealthsecurity.Plannedhigh-levelscopingmissionsto understand country priorities, and develop strategic responses building on Australia’s institutionalstrengths, willprovideausefulstart.Follow-upeffortsarealsoneededtocombineforceswiththeothermajoractorsinregionalhealthsecurity,includingthemultilateralinstitutionsandtheUSgovernment.

BeyondthenewHealthSecurityInitiative,weneedtogivemoreattentiontotheperformanceandflexibilityofthemultilateralinstitutions,includingonspecifichealthinvestmentswithdevelopmentbanks.Weshouldremaincleareyedaboutthevariableperformanceofmultilateralinstitutionsinhealth.TheHealthEquityFundhasperformedstronglyinCambodia,whiletheregional(GreaterMekongSubregion)malariaeliminationtrustfundhasroomtoimprove.Whilethereasonsarevaried–andnotalwayswithintheaidprogram’scontrol–healthinvestmentswithmultilateralbankscanrequiresignificantresources,includingourownstafftime,tomakethemsuccessful.

Wewillneedtocontinuetousetheaidprogram’srepresentationandinfluenceinglobalhealthpolicyforumstobenefittheregion.Australia’sroleontheBoardoftheGlobalFundforAIDS,tuberculosisandmalariahashelpedensureastrongprofileofinvestmentintheIndoPacificforthe2017-19replenishment.AustraliasecuredanewcatalyticinvestmentfundundertheFundthathasincreased the resources available to address drug resistant malaria and tuberculosis, and contributestobroaderregionalhealthsecurityefforts.In2016-17wealsochampioned,throughtheGaviBoard,tailoredcountrysupporttohelpcountriesmakethetransitionfromGavifundingtowardsfullyself-financedvaccineprograms.Lookingforward,wewillneedtocontinueouradvocacy for fair and sustainable transitions for countries in our region.

Finally, there is scope to better incorporate political economy considerations in health. Health is influencedbypolitical,economicandsocialfactors.Inthepastwehavebeencomfortablewithanarrowfocusontechnicaloutcomemeasures,suchascountinghealthserviceutilisation,immunisingkidsandsupervisingbirths.Theseareessential,butourhealthinvestmentsmustaffordequalimportancetoaddressingthepoliticaleconomyofhealth–understandingincentives,buildinginstitutions,andenablingleadership.NowhereisthismoreimportantthaninPapuaNewGuineawherethereremainchallengesinachievingresultsinthePNGhealthsectorlinkedtoourdecades-long health program. While some service delivery and capacity substitution seems necessary,wenowneedtochange‘how’wesupportthePNGhealthsector,cultivatePNGownershipandaccountability,andworkpolitically–addressingrelevantfactorsoutsidethehealthsystem.Aswedothis,inPNGandacrossourcountryhealthprograms,wewillincreaseourchancesof lasting and positive impact.


Building resilience: humanitarian assistance, disaster risk reduction and social protectionIn2016-17,Australiaprovided$628.6millionor16percentofODAinhumanitarianassistance,disasterriskreduction,socialprotectionandclimatechangeinvestments.Australianinvestmentsintheseareassave lives, limit economic and development losses from natural and human-induced crises and reduce communities’ vulnerability to crises. Australia’s investments deliver outcomes in support of a number of SustainableDevelopmentGoals(SDG),includingthoserelatingtoNoPoverty(SDG1),ZeroHunger(SDG2),GoodHealthandWell-Being(SDG3),ReducedInequalities(SDG10),SustainableCitiesandCommunities(SDG11), and Climate Action (SDG13). Through these investments, Australia is also meeting its commitmentsmadeundertheSendaiFrameworkforDisasterRiskReduction2015-2030,theAgendaforHumanity(2016)andthe‘GrandBargain’(2016)toimproveeffectivenessandefficiencyofhumanitarianaction.Australiarespondedtomorethan20humanitariancrises,providinglife-savingassistanceto4,266,970affectedpeople.

Overall,Australia’sbuildingresilienceinvestmentsperformedwellin2016-17.Thepercentageofaidinvestmentsmeetingqualityassessmentcriteriawashigherthanwhole-of-aidprogramresultsforefficiency,equalformonitoringandevaluationandslightlybelowforeffectiveness(Figure32).Performanceagainstthegenderequalityandempoweringwomencriteriawasdisappointing.Australiahasworkedwithpartnersandstaffinvolvedinhumanitarianactiontobuildgendercapacity.Evidenceofthebenefitsoftheseefforts,includingtheprovisionofsex-disaggregateddatareporting,willtakesometimetobecomevisibleandsupporthighergenderratings.Allhumanitarianresponseinvestmentswereassessedassatisfactoryoraboveagainstthehumanitarian“Protection”criterion,i.e.theextenttowhichinvestmentsprotectthesafety,dignityandrightsofaffectedpeople.

Figure 32: Building resilience investment performance, 2016-17

Building Resilience Whole of aid program

Gender equality

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Disability-inclusive DevelopmentTheAustralianaidprogramhashadstrategiestosupportdisability-inclusivedevelopmentsince2009. The‘DevelopmentforAll’strategieshaveaimedtoimprovethelivesofpeoplewithdisabilitiesbymakingAustralian development assistance more disability-inclusive and having broader impacts through advocacy work.Advocacytoshapethepoliciesandprogramsofbilateral,multilateralandotherdevelopmentagencieshasthepotentialtodeliverexponentialbenefitsforpeoplelivingwithdisabilityaboveandbeyondwhatcanbeachievedbyAustraliandevelopmentassistance.

AnODEevaluationoftheeffectivenessandcredibilityofDFAT’sglobaladvocacyfordisability-inclusivedevelopmentwascompletedin2017.46Itfocusedonadvocacyworkthathasbeenthemostsignificant,intermsofeffortandfunding:

• Advocacy in global policy processes

• Building the capacity of other advocates

• Improving data collection on disability

• Influencingpartneragencies;and

• Buildingandworkingincoalitions.

The evaluation found that Australia is seen and valued as a leader in disability inclusion in the development process.RecentmajorglobalpolicyframeworksespeciallytheWorldHumanitarianSummitoutcomeandthepost2030SustainableDevelopmentGoalshaveseenunprecedentedrecognitionandinclusionoftheneedsofpeoplewithdisabilitydueinnosmallparttoDFAT’sadvocacy. AhallmarkofDFAT’ssuccesshasbeenthewayithasmodelledtheprinciple‘Nothingaboutuswithoutus.’DFAT’ssupporthashelpedbuildthecapacityofDisabledPersonsOrganisationsandfacilitatedtheirinvolvementinmajorpolicyandreform processes.

46 For a copy of the evaluation, refer to Unfinished business: Evaluation of Australian advocacy for disability-inclusive development at http://dfat.gov.au/aid/how-we-measure-performance/ode/strategic-evaluations/Pages/unfinished-business.aspx.

http://dfat.gov.au/aid/how-we-measure-performance/ode/strategic-evaluations/Pages/unfinished-business.aspx


Annex A: Official Development Assistance delivered by other government agencies47

The Treasury (ODAexpenditure$207.3million)

Treasurysupportedinternationalfinancialinstitutionsthatmakesignificantcontributionstodevelopmentoutcomes.ThisincludedpaymentsofpreviouslyagreedcapitalincreasestotheInternationalBankforReconstructionandDevelopmentandtotheAsianDevelopmentBank(ADB),aswellascontributionstotheWorldBank’sGlobalInfrastructureFacilityandtheADB’sAsiaPacificProjectPreparationFacility.

ArangeofagenciesintheTreasuryportfolioassistedintrainingofficialsandregulatorsinpartnercountries. These agencies include the Australian Securities and Investments Commission, the Australian Competition and Consumer Commission, and the Australian Bureau of Statistics.

Australian Centre for International Agricultural Research (ODAexpenditure$103million)

As Australia’s specialist agricultural research-for-development agency, ACIAR actively contributed to the overallaidobjectivesbyimprovingtheproductivityandprofitabilityofagriculturalsystemsincountriesoftheIndo–Pacificregion.ACIARsupportedeconomicandpublicdiplomacythroughimprovingagriculturalcompetitivenessandsustainability,increasingvaluechainefficiencyandeffectiveness,alleviatingregulatoryimpedimentsinrelationtodomesticandinternationalmarketsandcapacitybuilding.ACIARmanagedresearchpartnershipsintheareasofcrops,livestock,fisheries,naturalresources,forestry,andsocioeconomicsandpolicywhichgeneratednewtechnologiesandsystems,innovationatthefarmlevel,and greater capabilities in research and production.

AnumberofexampleshighlightACIAR’scontribution.InVanuatu, researchers pinpointed substantial areasofunderutilisedlandwhere,withsupport,agroforestrycouldsucceed.InFiji, Kiribati and Samoa, ACIARresearchhashelpedtodiversityseaweedindustries.CulturedpearlsarethePacificregion’smostvaluableandhighestpriorityaquaculturecommodity.Pearlcultureiscompatiblewithtraditionallifestylesand provides several opportunities for generating income. Research on pearl oyster mortality, and establishmentofagiantclamhatchery,havehelpedFijitorecoverfromtheravagesofCycloneWinston.SmallholderfarmingfamiliesarethebackboneoffoodproductioninPNG. To provide support to these families through transition from subsistence practices into the cash economy, ACIAR has funded a Family Teamsprogram,whichhasshownthatmen,womenandyouthworkingtogetherasafamilyunitleadstomoregender-equitableandeffectivefarmingpractices,andtheseinturnresultinimprovedfamilylivelihoods.GalipnutisamarketableproductwithstrongconsumerdemandandacceptanceinPNG.ACIARfundingishelpingtoexpandthedomesticmarket,withthepromiseofalsodevelopingan exportmarket.

47 GovernmentagencieswithODAexpenditureofAUDonemillionorgreaterareincluded.


OnionsareoneofthemostimportantandprofitablecropsthatsmallholderscangrowinIndonesia, but farmersriskharmingthemselvesandtheirenvironmentthroughexcessiveuseofagri-chemicals.AcleanseedsystemforonionsgrowninJavaisleadingtohealthier,moreproductiveonions.InthePhilippines, smallholderfarmersarelearninghowtoreducetheimpactofthehighlydestructiveFusariumwiltTR4onbananayieldsbyadoptingdiseasecontrolpracticesintroducedthroughanACIARfundedproject.AnACIARfundedagroforestryprojectinnorth-westernVietnam is improving the livelihoods of smallholder farmersthroughhigherincomefromproduce,morefodderforlivestockandbettermanagementresultinginlesssoilerosion.Alsoinnorth-westVietnam,ACIARprojectsareworkingwithethnicminoritiesincludingtheHmongpeopletoimprovetheproductionandmarketingoftraditionalgreenleafyvegetables,targetingtheHanoimarket.Farmers(ledbywomen)arenowenjoyingsubstantiallybetterlivelihoods, enabling them to send their children to school and university.

Australian Federal Police (ODAexpenditure$77.5million)

TheAustralianFederalPolice(AFP)istheprimaryandpreferredlawenforcementpartnerforanumberofcountriesintheIndo-Pacificregion.During2016-2017,AFPsupportforeffectivepolicingservicesintheregionprimarilycontributedtotheaidprograminvestmentprioritiesof:

• effectivegovernance:policies,institutionsandfunctioningeconomies;and

• genderequalityandempoweringwomenandgirls.

AFPsupportedthePoliciaNacionaldeTimor-Leste(PNTL)toprovideeffectivefrontlineservicesduringelectionprocesses.ExternalsecurityobserversnotedthePNTL‘demonstrateditscapacitytoprovidesecurityforcommunitiesacrossTimor-Leste...theelectionsawnomajorsecurityincidentsordisturbancesto the peace. This is due to an increase in the professionalism and capacity of the PNTL.’ AFP support for the Royal Solomon Islands Police Force started transitioning from the Regional Assistance Mission to the Solomon Islands to a smaller and more targeted Solomon Islands Police Development Program (SIPDP). SIPDPfocusesoncommunity-levelservicedelivery,aswellasinstitutionalcapability.InPapuaNewGuineatheAFPprioritisedsupportingtheRoyalPapuaNewGuineaConstabulary(RPNGC)todevelopcriticalpolicecapabilitiesaheadofAPEC2018.

Regionally,theAFPcontinuedtoworkinpartnershipwiththeFijiWomen’sCrisisCentre(FWCC)todelivergenderandhumanrightstrainingtopoliceofficers.During2016-2017,theAFPcomplementedinvestmentsinmiddleandjuniorofficerswithafocusonpoliceleaders.TheAFPandFWCCworkedwithpoliceleaderstoidentifywheretheycouldpositivelyinfluencegenderequalitywithintheirorganisations.OngoingAFPcapacitydevelopmentsupportforPacificTransnationalCrimeUnits(TCUs)alsoledtoanincreaseinourpartner’sabilitytocontributetoregionaldisruptions.Forexample,1.4tonnesofcocainewasseizedofftheAustraliancoastinFebruary2017asaresultofatwoyearinvestigationthatPacificTCUsactivelycontributedto.

Department of Health (ODAexpenditure$11.2million)

TheDepartmentofHealth’scontributiontoofficialdevelopmentassistanceisprimarilymadethroughitsassessedcontributiontotheWorldHealthOrganization(WHO).ThisenablesAustraliatoparticipateintheWorld Health Assembly and technical fora and shape regional and global health priorities.


Department of Jobs and Small Business (ODAexpenditure$8.4million)

The Department of Jobs and Small Business provides an annual contribution to the International Labour Organization(ILO),atripartiteUNagencythatsetslabourstandards,developspoliciesanddevisesprogrammespromotingdecentworkforallwomenandmen.Additionalfundingin2016-17wasprovidedtotheILOtopreparearesearchreportandhostaregionalconferenceonthesubjectofWomenandtheFutureofWorkinAsiaandthePacific.Throughthisproject,adetailedanalysiswillbeconductedofthetoolsandpoliciesneededtoensurewomen’slabourrightsareupheldandtheyhaveaccesstoanequalshare of the region’s vast economic potential.

TheDepartmentalsocontinueditsdeliveryoftheSeasonalWorkerProgramme,whichcontributestotheeconomicdevelopmentofparticipatingPacificIslandcountriesandTimor-LestebyprovidingopportunitiesforcitizensofthesecountriestoundertakeseasonalworkinAustraliawhendemandcannotbesatisfiedlocally.Theprogramisasustainableanddirectwayofdeliveringaidtodisadvantagedcountriesintheregion.FundingunderthisactivityrepresentstheAustralianFairWorkOmbudsman’seffortsinmonitoringtheworkstandardsofworkers.

Department of Agriculture and Water Resources (ODAexpenditure$7million)

The Department of Agriculture and Water Resources provides Australia’s annual contribution to the UnitedNationsFoodandAgricultureOrganization(FAO),partofwhichisODA.TheFAOseekstoraiselevels of nutrition, improve agricultural productivity and food security, enable agricultural trade, better thelivesofruralpopulationsandcontributetothegrowthoftheworldeconomy.Australia,alongwithNewZealand,co-chairstheFAOSouth-WestPacificregion.Australiaworkstoensurethatthebenefits ofFAOmembershipsuchasagricultural,fisheriesandforestryskillsandknowledgesharingflowto PacificIslandcountries.

Department of Immigration and Border Protection (ODAexpenditure$3million)

TheDepartmentofImmigrationandBorderProtectionfundedarangeofactivitiesin2016-17tostrengthenthemigrationandbordermanagementcapabilitiesofinternationalpartnersintheAsia-Pacific,Middle East and Africa. Activities included supporting the voluntary return of displaced migrants, and providingcareandmanagementservicestodisplacedpopulations.ActivitiesweredelivereddirectlybyImmigrationandBorderProtectionandthroughfundingarrangementswithnongovernmentorganisations and multilateral bodies.

Theactivitiesin2016-17included:corefundingprovidedtothe InternationalOrganizationforMigration;fundingtodeliversupportforreturnandreintegrationassistancetoapproximately10,000refugeesanddisplacedAfghanpeoplereturningtoAfghanistanfromneighbouringcountriesthroughtheUnitedNationsHighCommissionerforRefugees;andemergencyassistancetoover230,000Syrianrefugees in Jordan.


Attorney-General’s Department (ODAexpenditure$1.7million)

TheAttorney-General’sDepartment(AGD)workedwithPacificIslandcountriestoimprovecapacityandtechnicalexpertiseinlawandjusticeagenciesandtoimprovePacificcrimeandpolicinglegalframeworksandtheirimplementation,includingonforensics,policing,sexoffencesandcybercrime. AGDsupportedworkthroughthePacificIslandLawOfficers’Networktoaddressfamilyandsexualviolence,environmentalcrimeandcorruptionandcybercrime,includingaregionalworkshopontheuseofelectronicevidence.AGDdeliveredtrainingandmentoringtobuildlawreformcapacityinPacificIslandcountries’lawandjusticeagenciesincludingthroughitsPacificPolicyChampionsandthePacificLegalPolicyTwinningPrograms.

Department of Communications and the Arts (ODAexpenditure$1.1million)

The Department of Communications and the Arts provides ODA to the International Telecommunication Union(ITU),theUnitedNationsspecialisedagencyresponsibleforinternationalcooperationintheuseoftelecommunicationsandtheradiofrequencyspectrum.ThisODAsupportstheITUinitseffortstofacilitateandenhancetelecommunicationandICTdevelopmentbyoffering,organizingandcoordinatingtechnicalcooperationandassistanceactivities.AportionoftheODAweprovidetotheITUisearmarkedfortechnicalassistanceandcapacitybuildingactivitiesintheAsia-Pacificregion.


Annex B: Assessment by Independent Evaluation Committee and the Office of Development Effectiveness

Foreword by Jim Adams, Chair of DFAT’s Independent Evaluation CommitteeI commend DFAT for delivering its fourth annual Performance of Australian Aid report (PAA). The report reflectsthedepartment’ssystematicmonitoringoftheperformanceoftheDFATcomponentofAustralia’sOverseasDevelopmentAssistancein2016-17.CombinedwiththesubstantialbodyofotherperformancedataonDFAT’swebsite,thePAAmanifestsAustralia’scommitmentandresponsibilitytotrackwhethermoneyisbeingspentinlinewiththeGovernmentpolicyobjectives,isbeingmanagedwell,andisproducing value-for-money and results on the ground.

ThisAnnexfulfillstheresponsibilityoftheIndependentEvaluationCommittee(IEC)andOfficeofDevelopmentEffectiveness(ODE)toreviewtheperformancestatementsinthisPAAforappropriatenessand accuracy.

Overall,the2016-17PAApresentsafairassessmentofDFATaidperformance.ItappropriatelyemphasisestheAustralianaidprogram’sachievementsthroughout2016-17,andreflectsonkeychallenges.Amixofqualitativeandquantitativedata–generatedbycredibleaidmanagementsystems–tellsacohesiveperformancestory.Italsodrawsonstrategicandprogramevaluationsofaidinvestments,consistentwiththenewaidevaluationpolicywhichwasintroducedin2016-17.Iviewthesystemasdurableandfit-forpurpose.Thisisechoedintherecent2018OECD/DACPeerReviewoftheAustralianAidprogram,whichreferstoDFAThavingaclearlyarticulatedandcomprehensiveperformanceframeworkthatexaminesperformanceatthestrategic,programandindividualinvestmentlevels(OECD,2018).48

TheIECwaspleasedtoseeimprovementsinthequalityandrobustnessoftheperformanceassessmentsgeneratedbytheperformancesystemin2016-17,andinthepreviouslylowpublicationrateofevaluationsfromcountryandsectoralprogramareas.Intheprevioustwoyears,theCommitteehadexpressedconcernsabouttheseissues.AsthefollowingODEstatementshows,2016-17sawwelcomeprogressinboththeseimportantareas.Thereishowever,roomforimprovement,particularlyinrelationtohowcountryprogramsarticulateandreportagainstoverarchingobjectives.

Bytheendof2016-17,nineoftheGovernment’stenstrategictargetsfortheaidprogramhadbeenachieved. These targets have been a useful means to drive institutional focus on development priorities, butnowneedtoberevisitedtoensureDFATremainsfocusedonrelevantchallenges.Inthiscontext,theIECnotesthatareviewoftargetsisbeingundertakenfollowingthereleaseoftheForeignPolicyWhitePaper.Recognisingthattheexistingstrategictargetrelatingtoempoweringwomenandgirlshasnotyetbeenachieved,itwillbeimportanttomaintainfocusonandimproveeffortstoaddressgenderissuesinaidinvestments.TheIECwouldalsoliketoseeastronger,moresophisticatedconceptualizationofvalue-for-moneythanthetargetscurrentlyreflect.

48 Review of the Development Cooperation Policies and Programmes of Australia, OECD,(2018).


The Committee also notes that aid investment performance is stronger in some regions and sectors than inothers.ThisPAAhasfoundthatcomparedtootherregions,progressagainstprogramobjectivesisnotasstronginthePacific,andthattheperformanceofhealthinvestmentsisnotasstrongasfortheaidprogramasawhole.Lookingahead,therewillbeopportunitiesforlessonsfromDFAT’saidperformancesystemstoinformhowprogramscanbestrengthenedintheseareas.

Inconclusion,theprospectofaresetofstrategictargets,combinedwiththeapplicationofthenewAidEvaluationPolicy–whichhasalreadyresultedinimprovementsinevaluationpublicationrates–presentsanopportunitytofurtherdevelopacultureofrigorousassessment,evidence-informedpolicymakingandcommitmenttotransparency.TheIEClooksforwardtoitscontinuedroleasanindependentcontributorto this.

Jim Adams Chair Independent Evaluation Committee


Statement by the Office of Development EffectivenessThefollowingassessmentfulfilstheroleoftheOfficeofDevelopmentEffectiveness(ODE),underthesupervisionofDFAT’sIndependentEvaluationCommittee(IEC),toreviewtheappropriatenessandaccuracyoftheperformancestatementsinthe2016-17PerformanceofAustralianAidreport(PAA).

Overall,thePAAisawell-structuredandcohesivedocumentthatdrawsonasubstantialbodyofperformancedatatopresentaconsideredandfrankstatementabouttheperformanceoftheAustralianaidprogram.ODErecognizesthedemonstratedcommitmenttoabalancedpresentationofthestrengthsandachievementsoftheAustralianaidprogramin2016-17,includingareasinwhichprogresshasbeenlessthanaimedforandwhy.Importantly,thedocumentalsoprovidessomeexamplesofplannedactionstoimproveperformance.Effortshavebeenmadethisyeartoreducethelengthofreportwithaviewtoimproving its accessibility. This has in part been achieved through directing readers to details available in other DFAT publications. This is a sensible approach.

The performance assessments in the PAA are enabled by DFAT’s strong aid management policies. Thesepoliciesarticulateasystemofregularperformanceassessments–largelypeerreviewed self-assessments–thatgeneratecriticaldata,focusstaffoncoreenablersofeffectiveaid,andfacilitateidentificationandmanagementofchallenges.ThePAAalsobenefitsfromDFAT’snewevaluationpolicyintroducedin2016-17.UnderthispolicyDFATpreparesandpublishesanannualAidEvaluationPlan.Further, to promote evaluation use and transparency, DFAT publishes management responses to all evaluations.TogetherwiththeoversightandqualityassurancefunctionsofODEandtheIEC,ODEconsidersthesepoliciesandprocessestobecomprehensive.TherecentpeerreviewoftheAustralianaidprogrambytheOECD’sDevelopmentAssistanceCommitteereinforcesthisview,notingthatDFAT’s“…aggregatedreportingsystemiswellorientedtoensurethatperformanceinformationisusedfor overalldirection,communicationsandaccountability…”andthat“…DFAThasastrong,independentevaluationsystem”. 49

DFAT’saidperformancemanagementsystemisbuiltontwokeymechanisms:AidQualityChecks(AQCs)andAidProgramPerformanceReports(APPRs).AsdetailedinthePAA,the376AQCsand26APPRscompletedin2016-17represented100%compliancewithdepartmentalrequirements.Thesehighcomplianceresultsareconsistentwithpreviousyears’results,anddemonstratethedepartment’sinvestmentinsystematicoversightandassessmentoftheeffectivenessofDFAT’saidprogram.

Asinpreviousyears,thisODE/IECassessmentofthePAAislargelybasedonourqualityassuranceoftheAQCandAPPRdatathatinformsthePAA.Asasecondarysourceofdata,wealsodrawontheworkthatODEdoesthroughitsindependentevaluations,whichassessAustralianaidinthecontextofspecificpolicydirectionsordevelopmentthemes.Afulldescriptionofthenatureandscopeofourassessment,aswellastheODEevaluationspublishedin2017,isprovidedbelow.

Since2008,ODEhascarriedoutaspot-checkofasampleofAQCreportstodeterminewhethertheAQCratings provide a robust assessment of aid quality.50ODE’squalityassuranceofastatisticallysignificantsampleof2016-17AQCreports(96intotal)foundthatacrossthesixAQCqualitycriteria,anaverageof81percentofratingswererobust.Importantly,ODEfoundthatoverallAQCreportqualityimprovedsignificantlybetween2016and2017,particularlyintheuseandqualityoftheevidenceusedtojustifyscores.ThisiswelcomegiventheconcernsODEandIECexpressedinlastyear’sPAAresponseaboutadeclineinhowwellevidencewasusedtojustifyperformanceclaims.

Alongwiththeseimprovements,ODE’squalityassurancealsohighlightedsomeongoingweaknesses. In particular, the quality of aid investment monitoring and evaluation (M&E) systems remain stubbornly difficulttoimprove.Inkeepingwithpastyears,in2016-17AQCscoresontheM&Equalitycriteriawere

49 Ibid.,ExecutiveSummarypp.4-5.

50ODEassessesratingsasrobustiftheyarejustifiedbytheevidenceandanalysisintheAQCreport,orjustifiedbytheevidenceandanalysisinthereportcombinedwithevidencefromsupplementaryinterviewswithinvestmentmanagers.


lowcomparedtomostothercriteria.OuranalysisalsofoundthatM&Escoresweretheleastrobustofallcriteria,suggestingthatanalreadyrelativelylowaggregatescorecouldinfactbelower.ODEremainsconcernedaboutstaffcapacitytorecogniseandreflectonwhatconstitutesgoodqualityM&E,aswellastoworkeffectivelywithdeliverypartnerstoimprovethequalityofthesesystems.ODEisundertakingadetailedevaluationofproject-levelM&Esystemsinabidtoimproveunderstandingoftheseissues,andtotryandmakeinroadstoimprovethislong-standingproblem–aproblemwhichiscommonamongdevelopmentagenciesthattakeperformanceassessmentseriously.51

ODEalsoundertookaqualityreviewofasampleofAPPRsfrom2016-17,whichcoveredthe12largestcountryprogramswithannualaidbudgetsgreaterthan$50million.Preliminaryfindingsofthisreview52 suggestthattheoverallqualityofAPPRshasrisencomparedto2015–16,andthataidperformancereportingisbecomingmoreclearlylinkedtomanagementdecisionmaking.Inparticular,moreAPPRsarepresentingasoundevidencebaseonwhichtodemonstrateeffectiveness–forexample,bydrawingonevaluationandreviewfindings.ODEalsofoundthattheAPPRqualityofthetwolargestprograms (PapuaNewGuineaandIndonesia)hasimproved.

However,ODEremainsconcernedthatsomeprogramsstillneedtoestablishclearerstrategicaidobjectivesandtargets,andreportmorerigorouslyonwhetherexpectedprogresshasbeenachieved. ThisisparticularlyimportantgiventhatAidInvestmentPlansarenowattheirhalfwaypointornearcompletion.

Takentogether,andfullyacknowledgingtheongoingneedtofocusonareasofweakness,thesefindingsgiveconfidencethattheperformanceassessmentsinthePAAthatdrawonAQCandAPPRassessmentsare sound.

Evaluationsoftheaidprogramalsomakeavaluablecontributiontothedepartment’sevidencebase,andaccountabilityclaims.ODEandIEChadexpressedconcernoveranumberofyearsaboutthelowpublicationratesofaidevaluationsandtheirinfluenceonmanagementdecisions.TheDFATExecutiverespondedtothisissuewithanewAidEvaluationPolicy,whichsoughttoimprovethequalityandpublicationrateofaidevaluations.ThispolicywasreleasedbytheDFATSecretaryandendorsedbytheIEC.53Ithasnowbeeninplaceforayearandtherearegroundsforoptimismaboutitsimpact.Aspartofthenewpolicy,thefirstdepartment-wideAidEvaluationplanwaspublishedontheDFATwebsiteinJanuary2017whichoutlinedtheevaluationsDFATundertooktocompletethatyear.54Bytheendof2017a95%completionratewasachievedforpublicationsagainsttheplan55,whichisabiggainonthepreviouspublication rate of 33 per cent. This represents a step-change improvement, from transparency, accountability and operational perspectives. ODE hopes that commensurate improvements in evaluation qualityandutilityaccompanythismuchimprovedpublicationrate,andwillcompleteacomprehensivereviewofevaluationqualitylaterthisyear,tomonitorandencouragethis.

Asalways,thereismoreworktobedone.Whilethe2018OECDpeerreviewpraisedAustralia’saidperformancearchitecture,italsohighlightedtheneedtobetterutilizetheevidencethatisgenerated bythesesystems.Thispointstotheneedtokeepstrengtheningtheaccessibilityofevidence,staffcapabilityandwillingnesstosystematicallyuseit,andeffortsbyseniormanagementtomodelandpromote its value.

51 ODEalsoexpressedthisinourresponsetothe2015–16PAA,referencingfindingofthe2016 World Bank Report on self-evaluation systems (ROSES).

52 Thereviewassessedthreethings:1)thequalityoftheaidobjectives;2)therobustnessoftheprogressassessments (againstobjectives):and3)thequalityofthemanagementresponsesidentifiedtoaddressissues.

53 DFAT(2017),DFAT Aid Evaluation Policy, http://dfat.gov.au/aid/how-we-measure-performance/ode/Documents/dfat-aid-evaluation-policy-nov-2016.pdf.

54 DFAT(2017),2017 Annual Aid Evaluation Plan, http://dfat.gov.au/aid/how-we-measure-performance/ode/Pages/previous-annual-aid-evaluation-plans.aspx.

55 Bytheendof2017,41outofthe43evaluations(95%)intherevisedplanhadbeenpublished–ofthetwooutstandingevaluations,onewaspublishedinFebruary2018andtheotherisexpectedtobepublishedbytheendofApril2018.

http://dfat.gov.au/aid/how-we-measure-performance/ode/Documents/dfat-aid-evaluation-policy-nov-2016.pdf

http://dfat.gov.au/aid/how-we-measure-performance/ode/Documents/dfat-aid-evaluation-policy-nov-2016.pdf

http://dfat.gov.au/aid/how-we-measure-performance/ode/Pages/previous-annual-aid-evaluation-plans.aspx

http://dfat.gov.au/aid/how-we-measure-performance/ode/Pages/previous-annual-aid-evaluation-plans.aspx


NatureandscopeofODE/IECassurance

Australia’s aid performance management policy, Making Performance Count,givesODEthetaskofqualityassuring and verifying the performance assessments made in annual Performance of Australian Aid reports.ThisapproachmeetsthePublicGovernance,PerformanceandAccountabilityAct2013(PGPAAct)Rulesection17,whichrequiresthatCommonwealthentities’auditcommitteesreviewtheappropriateness and accuracy of entity performance reporting. In the case of reporting on the performanceofOfficialDevelopmentAssistanceadministeredbyDFAT,thisfunctionisundertakenbyODEinconsultationwiththeDFATAuditandRiskcommittee.

Inlinewithmodernmanagementpractice,ODE’sapproachtothisqualityassuranceroleisriskbased.

Ourproceduresinclude,butarenotlimitedto:

• Assessmentoftherobustnessofratingswithinastatisticallysignificantsampleof96AQCreports (26percentofthepopulationofAQCssubmittedin2017)

• Detailedassessmentofthequalityofall26countryandregionalprogramAPPRscompletedin2017,coveringthe2015-16financialyear

• Completionofin-depthevaluationsofaspectsoftheAustralianaidprogram(sixin2017).

Consequently,ODEdoesnotcheckorverifytheaccuracyofeveryfigureandeverystatementinthePAA.Inparticular,ourapproachdoesnotallowustoattesttotheaccuracyof:

• Financialinformationandthequalityoreffectivenessoffraudandanti-corruptionstrategies

• Multilateral Performance Assessments and Partner Performance Assessments

• Estimates of aggregate development results

• Estimatesoftheextentorqualityofprivatesectorengagement,includingperformanceundertarget2

• Performance statements covering ODA appropriated to other agencies.

ODEEvaluationsPublishedin2017

1. HumanitarianAssistanceinthePacific:TheEffectivenessofAustralia’sResponsetoCyclonePam(February)

http://dfat.gov.au/aid/how-we-measure-performance/ode/other-work/Pages/evaluation-of-effectiveness-australias-response-cyclone-pam.aspx

2. Investinginroads:LessonsfromtheEasternIndonesiaNationalRoadsImprovementProgram(March)

http://dfat.gov.au/aid/how-we-measure-performance/ode/other-work/Pages/investing-in-roads-lessons-from-eastern-indonesia-national-roads-improvement-program.aspx

3. Combatting Pandemics & Emerging Infectious Diseases (August)

http://dfat.gov.au/aid/how-we-measure-performance/ode/strategic-evaluations/Pages/pandemics-and-emerging-infectious-diseases.aspx

4. Cambodia Agricultural Value Chain (CAVAC) Phase One evaluation (December)


5. Makingitcount:LessonsfromAustralianelectoralassistance2006–16(December)


6. Unfinishedbusiness:EvaluationofAustralianadvocacyfordisability-inclusivedevelopment(December)

http://dfat.gov.au/aid/how-we-measure-performance/ode/strategic-evaluations/Pages/unfinished-business.aspx


List of acronyms and abbreviationsACIAR Australian Centre for International Agricultural Research

ADB AsianDevelopmentBank

AEP Australian-Indonesia Education Partnership

AFP Australian Federal Police

AGD Attorney-General’s Department

AIPEG Australia Indonesia Partnership for Economic Governance

AMR Antimicrobial Resistance

ANCP AustralianNGOCooperationProgram

APEC Asia-PacificEconomicCooperation

APPR Aid Program Performance Report

AQC AidQualityCheck

ASEAN Association of Southeast Asian Nations

BEQUAL BasicEducationQualityandAccessinLaos

BRAC Building Resources Across Communities (Bangladesh-based development organisation)

CAVAC Cambodia Agricultural Value Chain

DAC Development Assistance Committee

DFID DepartmentforInternationalDevelopment(UK)

DIBP Department of Immigration and Border Protection

FAO FoodandAgricultureOrganization

GAP Gender Action Plan

GBV Gender Based Violence

GDP Gross Domestic Product

GEF Gender Equality Fund

GEF Global Environment Facility

GfG GovernanceforGrowth

GPE Global Partnership for Education

GPF Government Partnerships Fund

IEC Independent Evaluation Committee

IFC International Finance Corporation

ILO InternationalLabourOrganization

IRI Investments Requiring Improvement

ITU InternationalTelecommunicationUnion

MoU MemorandumofUnderstanding

MPA Multilateral Performance Assessment

NGO Non-Government Organisation

ODA OfficialDevelopmentAssistance

ODE OfficeofDevelopmentEffectiveness


OECD Organisation for Economic Cooperation and Development

PAA Performance of Australian Aid report

PPA Partner Performance Assessment

PPP Public Private Partnership

SARTFP South Asia Trade Facilitation Program

SDG Sustainable Development Goal

STAR System for Transparent Allocation of Resources

UHC UniversalHealthCoverage

UNDP UnitedNationsDevelopmentProgramme

UNICEF UnitedNationsChildren’sFund

UNISDR UnitedNationsOfficeforDisasterRiskReduction

UNFPA UnitedNationsPopulationFund

UNRWA UnitedNationsReliefandWorksAgencyforPalestineRefugees

WASH Water, Sanitation and Hygiene

WBG WorldBankGroup

WFP World Food Program

WHO WorldHealthOrganization

WTO WorldTradeOrganization