Aid & development, explained.
Overseas development assistance helps build sustainable trade unions and workers’ organisations in global South countries (Getty Images)
Australia has an opportunity to fill the gap left by the US and Europe – and it’s good for democracy, too.
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The upside of the world’s downgrade in foreign aidThe upside of the world’s downgrade in foreign aid
In the space of just four months, the global aid and development landscape has changed dramatically. While much of the focus has been on President Trump’s move to shut down USAID overnight and subsequently dismantle the world’s largest foreign assistance program, some European governments have also redirected funds to respond to increased numbers of refugees from Ukraine or to bolster national military spending.
In an era when illiberalism is growing across the Indo-Pacific, Australia has an opportunity to fill this gap – specifically, through overseas development assistance that helps build sustainable trade unions and workers’ organisations in global South countries. Strengthened trade unions promote democratic values and have the potential to counter rising authoritarianism in the Indo-Pacific while advancing the type of systemic change that addresses poverty and social protection. Strengthened trade unions also contribute to improved human rights in the countries they operate.
Democratic spaces have been under attack by populist, autocratic and repressive regimes across the world, particularly in the last decade.
Many developed countries have a specific allocation in their international aid program for partnerships to build workers’ organisations and trade unions. A good, albeit historic, example is USAID’s Global Labor Program. Created in 1997, it operated in 30 countries worldwide and aimed to build the capacity of democratic trade unions to represent workers by providing technical assistance and engaging with governments. An external evaluation in 2021 found projects funded by the program led to strengthened advocacy for fundamental labour rights, increased rights for vulnerable workers such as migrant workers, and greater awareness of gender-based violence at work. Countries such as Norway and Japan have run similar programs for decades, supporting capacity building and trade union development.
Unions lift the living standards of the population, particularly for women workers in developing countries (Getty Images)
Strengthening trade unions and workers’ organisations plays a double role in development. First, unions lift the living standards of the population, be it through improved living wages, healthcare, social protections, or other reforms. This is particularly the case for women workers in developing countries, who are gaining increased representation in decision-making structures, not just within unions but in local councils and similar government structures. Trades unions, often working in concert with Australian organisations including law firms, are making workplaces — and in turn, countries — safer through Occupational Health and Safety campaigns. Trades unions in developing countries are also at the forefront of tackling climate change by supporting workers in carbon-intensive industries to train and transition to new work.
Second, democratic spaces have been under attack by populist, autocratic and repressive regimes across the world, particularly in the last decade. In history and in the present, a driving force in struggles to win or defend democracy has been workers’ movements. The largest democratic organisations internationally, and indeed in most countries, are the trade unions. Their immense capacity to galvanise workers is evident in countries such as Myanmar where public sector unions led the first and most immediate responses to the junta takeover in 2021. The junta has now effectively banned independent unions in the country.
The benefits of worker organisation capacity-building programs have been proven over decades of experience by OECD nations.
So, how can Australia help strengthen the rights of workers in its region? Australia’s current focus is the Pacific Islands and Southeast Asia, but Australia is also an Indian Ocean nation, with political, security, economic and social interests in South and West Asia, and Southern Africa. Development programs in these regions align closely with Australia’s broader security interests as they encourage democratic pluralism, strengthen effective and accountable governance, enable deeper partnerships, and contribute to stability across the Indo-Pacific.
Drawing on the expertise of donor countries from the Organisation for Economic Cooperation and Development (OECD) and the international trade union movement, the capacity of the Department of Foreign Affairs and Trade, along with development organisations and actors in this new area, will need to be built and strengthened to deliver an Australian program. This will require:
The benefits of worker organisation capacity-building programs have been proven over decades of experience by OECD nations. From worker safety to governance training, these programs have lifted wages and conditions in difficult circumstances. In the current global environment of rising military conflict, climate change challenges, and democratic erosion, an opportunity presents itself for the newly re-elected Albanese government to make a difference.
About the authors
Osmond Chiu
Osmond Chiu is a Research Fellow at the Per Capita thinktank.
Danae Bosler
Danae Bosler is an Assistant Secretary at Victorian Trades Hall Council, the peak body for unions in Victoria.
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