East Asia

Estimated ODA to Indonesia and East Asia in 2007-08: $970.4 million*

Ten years on from the 1997 financial crisis, East Asia is wealthier, poverty rates are lower and growth is faster than ever before. According to the World Bank, developing economies in East Asia grew by an average of 9.5 per cent in 2006.

Although dominated by strong growth in China (at some 10.7 per cent for 2006), low income countries such as Cambodia, Laos, Vietnam and Mongolia also grew at an impressive 8 to 10 per cent. Over the last five years, this growth has been accompanied by significant reductions in poverty. According to World Bank estimates, in 2006 the number of people in East Asia living on less than US$2 a day fell to around 550 million or 29 per cent of the population.

Despite this impressive record, East Asia continues to face a number of challenges. Some parts of the region, including the southern Philippines and eastern Indonesia, lack economic opportunities and suffer continuing high poverty rates.

The spread of infectious diseases, including HIV/AIDS, and potential pandemics such as avian influenza, are major threats to the good progress in the region over recent years. Corruption, environmental issues, inequalities caused by poor governance, and peace and security continue to pose significant challenges.

AusAID continues to work cooperatively with countries in East Asia to address these challenges. Assistance to the region focuses on improving government service delivery, supporting peace, justice and security, promoting regional and international economic integration, rural development, clean water and sanitation, and addressing transboundary threats.

* Includes $458.8 million in total ODA to Indonesia. Estimated ODA to Southeast Asia in 2007-08 excluding ODA to Indonesia is $511.6 million.

November 2007