It’s done: NZAID is merged back into the Ministry of Foreign Affairs and Trade, and the key focus statement is changed from ‘poverty alleviation’ to ‘sustainable economic growth’.

However, perhaps the Government did listen to some of our protests. Although NZAID is merged back into the ministry, we are assured that it will not be the same as in the days before its establishment. NZAID will continue to exist as an organisation within MFAT, with specialist staff, its own budget, and its own priorities (although these will have to be aligned with overall foreign affairs policy). Initially at least, the changes are designed to ensure budget savings by rationalising management and financial systems through the whole Ministry. While we continue to oppose the use of development aid as a foreign policy tool, the promise of continued budget increases is welcome. If the saving achieved by the merger means that the total amount of money goes further, then we will all be cheering!

The new statement of NZAID priorities, while, as promised, putting economic growth at the top, continues to include the basic poverty oriented development principles:

"Through its development assistance, NZAID supports activities that encourage economic growth; help to create safe, just and inclusive societies; fulfil basic needs; achieve environmental sustainability; and reduce hardship."
NZAID Currents magazine, April 2009

The Minister for Foreign Affairs, Hon Murray McCully, has been giving out indications of the new Government’s plans for NZAID. While there has not yet been any official announcement, the comments that Mr McCully has made have been causing concern among those involved with development programmes.

One of the key comments has been to signal a change in emphasis from ‘poverty alleviation’ to a focus on ‘sustainable economic development’. Mr McCully has made it clear that he considers many of the existing ‘poverty alleviation’ programmes to be a waste of time and money. In line with National’s free-enterprise philosophy, he sees the promotion of trade as the best response to global poverty. In a speech to a New Zealand-Pacific Business Council sponsored event in February he outlined the trade deficits faced by Pacific Island nations and argued that these demonstrated the failure of previous aid policies. The solution he says is to promote economic growth through increased trade with New Zealand.

Poverty elimination and sustainable economic development should never be painted as opposites. Ideally they are both part of the same thing. You will not get sustainable economic development without direct poverty elimination programmes; you will not get anywhere with poverty elimination without providing paths for sustainable economic development. Economic development requires healthy people with increasing levels of education. Health and education are core poverty elimination programmes. These are the balances that all of us in development work with all the time.

LONDON - 13 February 2009

The Anglican Archbishop of York, Dr John Sentamu, yesterday highlighted the significance of the world financial crisis and discussed the implications for ministry for those struggling with the practical consequences of the downturn in the economy.

Reflecting on the need for active solidarity, Dr Sentamu said: "We have heard the predictions. This slough of economic despond is deep and we are told it will get deeper. For every statistic on the hundreds of jobs lost, there are hundreds of stories of individual hardship and of families in need. Their struggle must be our lament ­ as we face up to our responsibilities.

He said: "England, you think you've got problems? It's time to get real.

In the present political and economic situation the government is under pressure, and has promised both to not increase spending and also to look for areas where savings can be made. While it is important for them to protect the interests of New Zealand, the global economic crisis will have an even greater impact on the poorest groups in the developing nations. It is vital that we continue to increase our development assistance. See article Amid the Turmoil

We invite you to write to Prime Minister John Key to keep our National-led government accountable to justice and mercy on the international scale. Below is a letter that you could use. Select and copy the text, paste into your word processor, put your name on the bottom, and print it. Postage for letters to Members of Parliament is free. Put the address below on the envelope and post it!