Aid for trade and ecologically sustainable development in Australia’s international aid program

Abstract

In September 2015, Australia, along with 193 member states of the United Nations, signed the United Nations Sustainable Development Goals. The facilitation of international trade and increasing foreign aid for developing countries were emphasised as crucial means for achieving the Sustainable Development Goals. An important role was assigned to the international Aid for Trade initiative, which is about stimulating economic growth in developing countries through removing constraints to trade. Australia has been a strong supporter of the Aid for Trade initiative since it was launched at the World Trade Organization’s Ministerial Conference in Hong Kong in 2005. Aid for trade has become a central plank of the ‘new development paradigm’ of Australia’s international aid program. This article analyses the conceptualisation and practice of aid for trade in Australia’s aid, with a focus on how it links to ecologically sustainable development. It argues that Australia’s aid for trade is reinforcing the neo-liberal development paradigm in which environmental dimensions are overall neglected and private sector development and free trade are prioritised. In order to achieve international and national development goals of poverty reduction and sustainable development, environmental sustainability needs to be fully integrated into the growing aid for trade portfolio of Australia’s international aid.