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Myopic vision puts overseas assistance at risk

In most areas of Foreign Affairs, Labour and National close ranks to provide a united front on the international stage.

This bipartisan approach is important, as we are a small player with a very short electoral cycle. Therefore, a consistent, principled approach to Foreign Affairs is important for New Zealand’s reputation and relationships overseas.

But in the last three years, the National-led government has taken Overseas Development Assistance (ODA), or overseas aid in a direction, which we in the Labour Party cannot support.

As a result, we have a different approach to ODA from National.

New Zealand used to have a good reputation for the efficient and effective delivery of aid, especially in the Pacific.

NZAid was a standalone entity, which was responsible to the Foreign Affairs Ministry and accountable to Parliament for its expenditure.

Non-Government Organisations (NGOs) bid for aid contracts and had a wealth of experience in delivering towards specific goals.

National has disbanded NZAid and folded its functions back into the Foreign Affairs and Trade Ministry, sidelining the NGOs in the process.

Project abandoned

NGOs still bid for aid contracts but there are long delays in approving them, because the Minister wants to see each and take his time over approving them.

Time-dependent contracts have been lost because of this approach. For example, a project, which was to assist communities in crop planting in a Pacific nation was abandoned because the approval for funding did not come through in time for the planting season.

More importantly however, the Minister has directed aid programmes away from the primary goal of poverty elimination towards the goal of sustainable economic development.

That may sound all very well but in the Pacific, where most of our aid money goes, it means that there is less emphasis on the Millennium Development Goals (elimination of poverty, increased literacy rates, maternal health improvements, reduction of infant mortality rates and others) and more emphasis on private enterprise being used to develop projects to build infrastructure.

Labour supports sustainable economic development, but where are the healthy, educated workers in these new economic enterprises going to come from if access to education and health services is not prioritised?

It is great to build a new jetty for Niue but if it is simply a way of channelling funds into private sector back pockets, then it needs to be scrutinised closely.

Questionable Contracts

The role of the Minister is also doubtful here. He has given aid contracts to his private sector business friends without making them go through a tender process. That is wrong. New Zealand’s aid reputation is suffering as a result.

Labour will refocus the mandate of the development programme on the elimination of poverty, together with sustainable economic development, in order to build just, prosperous and secure societies.

Labour will re-establish NZAID as New Zealand’s international development agency, committed to the elimination of poverty, implementing a high-impact development programme, transparent and accountable and contributing to New Zealand’s broader foreign policy goals.

We will recommit the New Zealand development programme to the best international practice, including the Aid Effectiveness principles of ownership, alignment, harmonisation, results and mutual accountability.

We will ensure that New Zealand’s development assistance projects are consistent with our objectives to achieve the Millennium Development Goals.

For more information, visit www.ownourfuture.co.nz

Maryan Street is Member of Parliament on Labour List and the Party’s Spokesperson for Foreign Affairs and Trade and Overseas Development Assistance.

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