Global Inequity - The Way Forward

Speech by the Australian Deputy Prime Minister and Minister for Trade, The Hon Tim Fischer to Xavier College's "Simply Sharing Week", Kew, Victoria, 17 March 1998.

Introduction

Ladies and gentlemen, students of Xavier College. It is with great pleasure that I stand here today in the midst of surroundings which bring back many fond memories.

This is where my professional life effectively began - for this is where I acquired the habits of intellectual rigour which have helped me throughout my career in Parliament and as Deputy Prime Minister. I encourage all of you here to drink deep of the intellect and learning available to you at Xavier College.

I would also like to say how very impressed I am by the spirit of self-sacrifice being demonstrated by the students of the college this week. "Simply Sharing Week" at Xavier will see students give up some valued possession or activity in order to help the underprivileged of this world. I applaud that commitment.

Australia's Aid Contribution

I am glad to say that you are not alone in your sacrifice. Australia is a country which does a lot to help the 1.3 billion people - a quarter of the world's population - who live in absolute poverty.

These people suffer enormously because they lack good health care, education, clean water, secure shelter and adequate food.

Many are uprooted by violent conflicts or natural disasters. Often these people lack the right to hold governments accountable for their actions. Millions of children have no hope of a decent life.

However daunting all this may sound, I believe Australia's current aid contribution of $1.4 billion per year does make a difference. We make a big difference, for example, in Papua New Guinea, which receives the largest share of our aid money.

By the year 2000 our aid will have funded the building of 525 elementary schools creating places for 18,000 new students as well as training 9,000 new teachers. The provision of basic education to so many more Papua New Guineans will improve their capacity to earn their own living - the greatest gift we can offer.

And we are meeting immediate needs in PNG as well. The worst drought in a hundred years has created food shortages with horrendous consequences for villagers' welfare. Since last September, AusAID has been providing comprehensive assistance to PNG including food, water and medicine as well as rehabilitation assistance to restore the land which has been devastated by drought and fires.

The Government is committed to ensuring that the whole of our $1.4 billion aid program has a similar impact. Last year we conducted the first major review of the aid program in 13 years.

One important new focus for the program is good governance.

Establishing appropriate economic policies and the legal and financial frameworks necessary to foster private sector development is crucial to enabling developing countries to achieve sustainable development. And assistance in this area could not be more relevant than it is right now - the Asian currency crisis is headline news across the world.

Australian aid has been responding to the Asian economic crisis through assistance to improve financial regulation, with managing and planning economic policy, with prioritising public sector investment and helping to monitor impacts on the poor. This is the nuts and bolts of governance - it is getting systems right.

When the fundamentals of effective governance are in place private sector investment and expanded trade can flourish.

Developing Countries, Globalisation and Trade Liberalisation

And the capacity to trade freely and fairly in an increasingly globalised environment is vital to developing countries being able to generate the income which can genuinely raise standards of living.

Globalisation offers huge opportunities for economies - provided there is equality of opportunity - as developing countries can now sell more of their product in a global market place. As Minister for Trade it is part of my job to encourage countries around the world to commit to a global environment of free trade and investment with a fair system of trading rules. Such a trading environment certainly benefits Australia and it benefits developing countries as well.

If I might indulge in a bit of self-promotion, I would like to present to the college library a copy of my recent Trade Outcomes and Objectives Statement. I think you will find it an interesting account of our efforts to boost trade and through trade, global wealth.

The absence of rules on trade in agriculture until very recently has meant that developing countries - for many of whom agriculture is an important economic strength - have been disadvantaged by the unfair trading practices - particularly export subsidies - of the economic giants: the European Union and the United States.

Australia played an important part earlier this decade in ensuring that trade in agricultural products was included in what was known as the Uruguay Round of international trade negotiations.

We have also played an important part in advancing the cause of free trade and investment in our region through the Asia-Pacific Economic Cooperation - or APEC - discussions.

Conclusion

A free and fair international trading system is vital not only to countries like Australia, but also to the smaller players in international trade. For developing countries it helps them to compete fairly with the economic giants of this world.

But in Australia we also need to realise that we are one of the world's better off countries. We have a responsibility to do what we can for our poorer neighbours. That is why we have an effective and targeted aid program aimed at helping the poor of the world achieve higher standards of living - both immediately and in the longer term.

I am therefore particularly heartened that the efforts of the Government are supported by today's youth in a very personal way. And I again commend the students of Xavier college who are making individual sacrifices this week to help the world's poor.