John Faulkner (NSW, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That the Senate take note of the document.

I note the national interest analysis and the appended agreements relating to Australia's bid for membership of the African Development Bank and African Development Fund. I also note that Australia is the only developed nation in the G20 not to be a member of the AfDB. Africa has the lowest life expectancy rates in the world. Infant mortality rates in Africa are 10 times those of Europe and North America, and 47.5 per cent of sub-Saharan Africans live on than less than US$1.25 per day. I believe Australia, as a developed nation, has a responsibility to do all we can to help pull African nations and their peoples out of poverty and put them on the path to prosperity.

Article 2 of the agreement to establish the African Development Fund states:

The purpose of the Fund shall be to assist the Bank in making an increasing effective contribution to the economic and social development of the Bank's members and to the promotion of co-operation (including regional and subregional co-operation) and increased international trade, particularly among such members. It shall provide finance on concessional terms for the purposes which are of primary importance for such development.

The African Development Fund and the African Development Bank promote sustainable economic growth and reduce poverty in their regional member countries. They do so by providing finance on concessional terms to member states so that states can stimulate their economies and build infrastructure projects, such as the Bujagali Dam in Uganda or the Dakar-Diamniadio Toll Highway in Senegal. The bank and the fund also provide technical assistance to members for the establishment of legal and social structures.

As I said in the adjournment debate last night, accountability in development projects is critical to maintaining donor trust—and this is absolutely essential when the donor is a nation state thousands of kilometres away. I note the 2011 Australian Multilateral Aid Review stated in relation to the African Development Bank:

AfDB programs deliver strong tangible results at country-level and in support of regional integration.

…   …   …

AfDB’s level of experience and on-the-ground presence in African countries makes it a valuable partner for Australia given Australia’s limited presence in Africa.

In 2004, the AfDB adopted an independent review mechanism which allows claims to be made where there are concerns the bank has failed to comply with its own policies. For example, the bank's resettlement policy provides:

… that when people must be displaced they are treated equitably, and that they share in the benefits of the project that involves their resettlement.

This means that when the building of a new road, dam, bridge or other bank-financed project displaces people the bank must treat equitably anyone that is displaced. This mechanism ensures that these displaced people have a voice, and it is a good example of a critically important and necessary accountability mechanism.

I fully support Australia bolstering its efforts to reduce poverty and stimulate economic and social growth in Africa. I support Australia's involvement in the AfDB.

Debate adjourned.