The Australian aid program: dealing with poverty?

The Australian government's White Paper on aid provides a blue print for the Australian aid program for the next decade. While it ostensibly has a focus on poverty, it still sees economic growth and effective government as the path to poverty reduction. This article analyses and highlights the issues associated with this approach to poverty. These are: growing inequality and vulnerability, the rural-urban divide in poverty outcomes, and increasing social exclusion leading to increasing social and political insecurity. The article then examines the alternative policies adopted by the British aid agency, DFID, and concludes with some suggestions on how the practice of the Australian aid program can better match the goal of poverty reduction.