Australian Aid to PNG - AusAID

In addition, Australian aid has facilitated improvements in media standards anddevelopment of the National Broadcasting Commission radio network, resultingin tangible improvements in the media’s ability to scrutinise governance issuessuch as government accountability.5.3 HealthAustralia has provided over A$250 million 22 in health sector assistance toPapua New Guinea since independence, 78% of which has been provided in thepast five years 23 . This level of funding represents about 70% of all donor healthsector funding in Papua New Guinea, suggesting that Australian aid has been akey contributor to the country’s health improvements. More than 25% ofAustralia’s aid has been provided through the Health Services Support Program,a sector-wide initiative that has grown significantly in the past three years. Afurther 20% has supported improvements in management and administrationwithin Papua New Guinea’s health sector.AusAID's support in the health sector and for the development of Papua NewGuinea’s Health Sector Improvement Program (HSIP) has resulted in somesignificant recent achievements. The mutual goodwill developed by Australia’scommitment to HSIP and its more flexible funding modalities were criticalfactors in allowing the rapid and sustained growth in health expenditure overthe past three years. The commitment to move towards a sector-wide approachand the subsequent reforms to aid delivery heralded by HSIP are substantiallyresponsible for the recent increase in donor support to the sector. Increasedresources have been flowing to the sector, there is greater policy engagement,and the National Department of Health and other donor partners areincreasingly focusing on performance. Structural changes and new planningand performance information mechanisms are providing the basis for improveddecision-making, resource allocation and accountability. Without HSIP it isunlikely other donors would have continued to be engaged.The most recent health sector study has found that increased donor funding inrecent years has not translated into improved health services or positive changesin health indicators. What it has done, however, is prevent a decline in sectorperformance that more than likely would otherwise have occurred, given the stateof service delivery and the severity of budget constraints. In essence, Australianaid has been helping to keep a collapsing health system functional, by providingessential health infrastructure and equipment, pharmaceuticals, immunisation,health education, institutional strengthening, technical assistance and training.22 This does not include A$13.8 million in support of water and sanitation infrastructure and services, whichare also vital to improved health.23 1997–98 to 2001–02.42 The Contribution of Australian Aid to Papua New Guinea’s Development 1975–2000