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17 February 2026
The Future of Australian Aid
It has been just over a year since the Trump administration’s dramatic cuts to America’s foreign aid budget and the shuttering of USAID. With other major donors also slashing their aid programs — potentially causing 22 million additional avoidable deaths by 2030 — what does this mean for Australia’s development efforts? A new OECD review of Australia’s aid program provides a timely opportunity to assess the health and future direction of Australian development assistance.
The Lowy Institute’s Roland Rajah and Grace Stanhope are joined by Cameron Hill from the Development Policy Centre at the Australian National University and Bridie Rice, CEO of Development Intelligence Lab, to discuss the global aid landscape, Australia’s comparative advantage in the region, and the tensions between short-term transactional wins and long-term transformational development.
[00:00] Introduction: Roland and Grace introduce the podcast and guests Cameron Hill (Development Policy Centre, ANU) and Bridi Rice (Development Intelligence Lab).
[01:05] The global aid crisis: Cameron outlines the unprecedented scale of cuts — the US, UK, Germany, and France all cutting simultaneously, with global aid potentially falling by a third between 2023 and 2026.
[03:15] Where Australia fits: Cameron explains why Australia hasn't joined the cuts, pointing to stable public support for aid across the political spectrum, while flagging growing policy tensions around the multilateral system.
[05:10] Geopolitics and development: Bridi argues the interplay between aid and geopolitics isn't new, but the intensity has shifted — and warns that chasing short-term influence risks losing long-term relationships Australia will need.
[09:20] The OECD review: Cameron and Bridi unpack the DAC's assessment of Australia's aid program — too many objectives, fragmented development finance, and a broader underinvestment in foreign affairs capability.
[13:35] A shifting development agenda: Grace and Bridi discuss the turn towards civil society, conflict prevention, and locally-led development — and whether Australia's program can absorb more complexity without losing scale.
[17:20] Gender equality and development quality: The panel welcomes Australia's international gender equality strategy as a principled stand at a time when other donors are moving in the opposite direction.
[18:45] The biggest factors ahead: Cameron makes the case for middle power coalitions and greater clarity on aid objectives; Bridi names climate change and AI as the two forces that will most shape development in the region — and where Australia is currently missing in action.
[24:55] Closing: Roland wraps up and credits the production team and DFAT support.
Featuring
Roland Rajah
Roland Rajah is Lead Economist and Director of the Indo-Pacific Development Centre at the Lowy Institute, focusing on economic development challenges across Southeast Asia, the Pacific Islands, and South Asia. His research spans macroeconomics, aid and development finance, geoeconomics, and regional integration.
Grace Stanhope
Grace Stanhope is a Research Fellow in the Indo-Pacific Development Centre at the Lowy Institute, working on the Southeast Asia Aid Map. Her work focuses on tracking and analysing foreign aid and development finance flows to Southeast Asia.