WELLINGTON (Pacnews) —Aid organizations in New Zealand have welcomed the NZ$70 million ($51.6 million) boost to overseas aid announced before Thursday’s budget.
The 20.2 percent rise over the 2007/08 financial year was the biggest increase to official development assistance in decades, Foreign Affairs Minister Winston Peters said.
More than half the new funding will be spent in the Pacific, particularly Melanesia. Asia will also benefit. The increase takes the overseas aid to NZ$429 million ($316 million) in 2007/08 — 0.30 percent of gross national income.
Further funding over the next three years will see aid reach 0.35 percent by 2010/11, at NZ$601 million ($443 million).
Oxfam New Zealand executive director Barry Coates welcomed the announcement.
“This represents a significant injection of millions more dollars for some of the world’s poorest and most vulnerable peoples,” he said.
“Our government aid has proven to be extremely effective.”
Coates said the extra money would be invaluable in the Pacific, where much of New Zealand’s assistance is spent.
“[The region] is facing multiple pressures. An increase in assistance is desperately needed to combat the interrelated problems of economic stagnation, high youth unemployment, destruction of natural resources, conflict and crime, poor health and pandemics, poor governance and natural disasters, including those related to climate change. The increase was an investment,” Coates said.
“A prosperous, sustainable and peaceful region is not only of benefit to those living in poverty, but to every Kiwi. The Government should be congratulated for recognizing this.”
Council for International Development executive director Rae Julian said it is the most significant increase in recent years.
“This is a big step forward and is certainly getting New Zealand closer to our goal.”
The Green Party welcomed the boost beyond the previously projected “measly increase.”
Foreign Affairs spokesman Keith Locke said the rise could finance climate change projects in the Pacific.
“This is an opportunity for us to put more resources into sustainable energy projects in the region.”
Peters said the government is committed to playing its part in helping the poor and vulnerable.
Fiji is the exception among Pacific countries receiving the funding, as aid was suspended after December’s coup.