Effectiveness and outcomes of Australia's aid program – 2018 inquiry

The ECA strongly supports the aid-for-trade component of the Australian Government’s aid program and believes the aid-for-trade program is delivering positive outcomes for recipient countries and Australia.

One of the most fundamental economic principles is that the economy of any country benefits when it engages in international trade. Using aid to stimulate trade is a valuable objective for Australia’s aid program. It not only benefits the recipient country, but it also benefits the region and Australia.

Growing a country’s international trade requires coordination and support across multiple different areas: infrastructure development, micro, macro and international economic policy, institutional capacity building and governance development, and firm-level support. Of these, providing the right support to the right businesses is critical for achieving the desired development outcomes.

Its aid program is not the only way the Australian Government is growing trade in developing countries. Multilaterally, Australia is helping to grow trade through its international advocacy for an open international trading system based on rules. Expanding Australia’s free trade network also contributes to growing the trade of developing countries in the region.