Australia Shifts Focus of Foreign Aid to Indo-Pacific: A Strategic Move

Australia plans to redirect its foreign aid predominantly towards its Indo-Pacific neighbors, reaching a 40-year high proportional allocation, following major cuts in U.S. overseas aid. The move aims to fortify regional stability amid changing global aid dynamics, demonstrating Australia’s commitment as a trusted partner.

Australia is set to increase its foreign aid allocation to the Indo-Pacific region, marking a 40-year high, in response to substantial U.S. aid cuts. Documents obtained by The Associated Press reveal that three-quarters of Australia's aid will benefit its neighboring regions in Asia and the Pacific islands.

The fiscal year budget starting July 1 shows a slight increase of AUD 136 million, raising the total aid to AUD 5.097 billion. Despite the strategic aid shift, Ministers Penny Wong and Pat Conroy did not address the U.S. cuts directly.

Foreign Minister Wong emphasized that Australia's development program reinforces regional stability. Meanwhile, researcher Riley Duke highlighted Australia's budget adjustment as necessary to address potential gaps from decreased U.S. and European aid, underscoring Australia's evolving role in regional aid dynamics.

(With inputs from agencies.)