Aid & development, explained.
Australia's Anthony Albanese hosted ASEAN leaders for a summit in Melbourne in March 2024 (Penny Stephens/ASEAN-Australia Special Summit)
With US aid disappearing, a new report shows Australia has a chance to align development cooperation with the region’s challenges and Australia’s strengths.
Subscribe to The Informer for monthly expert analysis, and to Events for advance notice of visiting world leaders and distinguished guests.
You may unsubscribe from Lowy Institute newsletters at any time. For information on our privacy practices and how to unsubscribe, see our Privacy Policy.
Missed signals: What Southeast Asia wants vs what Australia deliversMissed signals: What Southeast Asia wants vs what Australia delivers
Foreign aid is set to be slashed in the United States, jeopardising lives, and throwing global programs into turmoil. With the United Kingdom now following suit and an Australian federal election on the horizon, Australia’s major parties must recognise a simple truth: closer ties with Southeast Asia – for diplomatic, economic, and security reasons – require meaningful, long-term development engagement.
This is not just about goodwill. As global conflict, crises, and competition mount, Australia must decide whether to follow the lead of the United States or acknowledge a more fundamental reality – our own prosperity is inextricably tied to the long-term prosperity of our neighbours.
Ignoring this risks leaving Australia further on the sidelines of its own region.
At a time when it really matters, Australia has a unique opportunity to make good on its promise to listen and better align development cooperation with the region’s challenges and Australia’s own strengths.
With the Australian election approaching, US foreign aid in flux, and global conflicts intensifying, now is the time for Australia to step up as a leading development partner.
A new report from the Development Intelligence Lab, Pulse Check x Southeast Asia: Shared Futures, sheds light on a disconnect – at times – between what regional experts want and what Canberra delivers. It brings together perspectives from more than 360 local, non-government experts across nine Southeast Asian nations receiving Australian aid. To remain a trusted partner, Canberra must recalibrate.
If one concern dominates the report, it’s climate change. Southeast Asian experts rank it as a greater disruption to development than economic, political, or security concerns. As one put it, “climate change is likely to have the biggest impact [on development] and is not being taken seriously.”
This presents a fundamental test for Australia’s regional credibility. While Canberra has sharpened its rhetoric on climate action, its standing in the region remains in question. Without serious investment in tangible projects, not just policy statements, Australia risks being sidelined in Southeast Asia’s climate agenda. The region is watching to see if Australia will lead or lag.
A solar panel farm in Thailand (Asian Development Bank)
Southeast Asian leaders are acutely aware of shifting geopolitical currents. They ranked great power rivalry as the third-largest disruption to development, with US-China tensions affecting everything from trade to national security. Market instability, investment uncertainty, and strategic dependencies are growing concerns.
What does this mean for Australia? Southeast Asian experts want a pragmatic, development-driven approach – not aid programs seen as tools of geopolitical positioning. If Australia’s engagement appears more about strategic posturing than real impact, trust will erode.
One expert put it bluntly:
“At the regional level, there is still a big question regarding Australia's preference to work with neighbouring countries vis-à-vis its attachment to the United States, which often complicates its policy choices.”
Australia’s engagement through ASEAN has also met scepticism. Experts across seven of nine surveyed countries ranked it as the least valuable way Australia could contribute to their development aspirations. Many view ASEAN as a forum dominated by superpower interests, where middle powers such as Australia risk getting lost in the noise. The preference? Bilateral partnerships that deliver direct, tangible development benefits. Ultimately, experts are most interested in partnerships that work – and they might not be multilateral ones.
“Australia is well known for its high rank in global education quality,” remarked one Southeast Asian expert, a widely shared sentiment. Across all nine countries surveyed, education topped the list of areas where Australia holds a comparative advantage, ahead of agriculture, health, infrastructure, and trade. The experts were interested in seeing Australia continue and deepen its existing work in education and skills.
Southeast Asian leaders also consistently called for greater access to Australia’s own tertiary education system. Regional development leaders emphasise that expanding access to tertiary education in Australia delivers not just economic benefits, but a significant developmental impact. However, restrictive visa policies and university enrolment caps hamstring this aspiration. If Australia truly wants to be seen as a supportive and forward-thinking neighbour, its domestic policies must evolve to match its regional ambitions.
With the Australian election approaching, US foreign aid in flux, and global conflicts intensifying, now is the time for Australia to step up as a leading development partner. Southeast Asian experts aren’t asking for grand strategies or ideological alignment. They want real, sustained investment in human capital, governance, and climate resilience.
The question is: How will Australia respond?
About the author
Mira Sulistiyanto
Mira Sulistiyanto is an Indonesian-Australian development expert, currently working at the Development Intelligence Lab as Senior Analyst.
The most-pressing world events explained by Lowy Institute experts and global contributors, in your inbox, every Thursday.
You may unsubscribe from The Interpreter at any time. For information on our privacy practices and how to unsubscribe, see our Privacy Policy.
