NZAID

FAQs | Recent changes to NZAID

return to | Frequently asked questions


Full information about recent changes to NZAID's institutional arrangements, mandate, and policy settings of NZAID is set out in these links:

Cabinet papers and subsequent Cabinet minutes.


jump to...

What is NZAID?

NZAID is the agency within the Ministry of Foreign Affairs and Trade that manages New Zealand 's official development assistance (ODA) programme and provides policy advice on international development issues.

What is NZAID's new mandate?

In April 2009 Cabinet agreed on a new mandate for NZAID. It is sustainable economic development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world.

Within this there is a core focus on sustainable economic development, and the Pacific will receive an increased portion of New Zealand 's ODA.

What changes have been made to NZAID's institutional arrangements?

In April 2009 Cabinet removed NZAID's semi-autonomous body status, making NZAID an agency within the Ministry of Foreign Affairs and Trade. The change brings NZAID into line with the standard management and accountability arrangements within the New Zealand public sector.

The changes strengthen the alignment of New Zealand 's foreign policy and development goals, by ensuring that New Zealand agencies working abroad are doing so in an effective and coordinated manner as part of ‘NZ Inc.'

NZAID will continue to manage New Zealand 's ODA programme and provide policy advice on international development issues.

The changes strengthen the alignment of New Zealand 's foreign policy and development goals, by ensuring that New Zealand agencies working abroad are doing so in an effective and coordinated manner as part of ‘NZ Inc.'

Back to top

What was the process leading up to the changes?

Before making the changes to NZAID's mandate and semi-autonomous body status the Government received input from a range of stakeholders: the State Services Commissioner, the Treasury, the management of the Ministry of Foreign Affairs and Trade and NZAID, as well as a number of private citizens and many organisations active in the field.

Two processes were carried out at the Minister of Foreign Affair's request. The first process was led by the State Services Commission, and looked at NZAID's institutional arrangements and explored closer integration between NZAID and the Ministry of Foreign Affairs and Trade. The second process, conducted by MFAT and NZAID, looked at changes to NZAID's mandate and policy settings to better reflect the Government's directions and priorities.
Following these two processes, recommendations were made which were then agreed by Cabinet.

For more information about the Cabinet papers and subsequent minutes click here.

Will NZAID still work to reduce poverty?

Reducing poverty is still part of NZAID's mission. NZAID's new mandate, as agreed by Cabinet, is: sustainable economic development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world. Within this there is a core focus on sustainable economic development, and the Pacific will receive an increased portion of New Zealand 's ODA.

Reducing poverty is inherently linked to economic growth and trade, and broad-based sustainable economic development will continue to be underpinned by investments in social development and good governance.

Back to top

Is New Zealand 's ODA being reduced?

No, it is being increased. The next four years will see the aid budget increase from $471.3 million in 2008/9 to $600 million in 2012/13. The aid budget for 2009/10 is $500 million.

What does a focus on sustainable economic development mean?

NZAID is increasing the support it provides for broad-based economic growth. This includes support for activities that produce concrete, measurable results for businesses and individuals through improving infrastructure and related services, and increasing support for the private sector (including for training and business support services).

Focusing New Zealand 's aid on sustainable economic development will in the long-term allow developing countries to fund their own social services (for example health and education services) and further development activities. To do this donor countries need to encourage economic growth, trade and the development of the private sector.

Do the changes mean that New Zealand 's aid programme will be determined by foreign policy interests?

NZAID's mandate is to support sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world.

This accords with New Zealand 's national interest and as such is a key foreign policy objective in its own right.

The changes to NZAID's semi-autonomous body status will strengthen the alignment of New Zealand's foreign policy and development goals, by ensuring that New Zealand agencies working abroad as part of ‘NZ Inc.' are doing so in an effective and coordinated manner.

NZAID staff will continue to be responsible for policy development, implementation and engagement that relate to our international development and ODA objectives.

Back to top

What is the relationship between poverty reduction and economic development?

New Zealand's ODA will support sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world.

Economic development provides the resources needed to achieve and maintain the internationally agreed health, education and other poverty reduction objectives set out in the Millennium Development Goals.

The Pacific region is rich in opportunities to create sustainable economic activity that are not currently being realised. New Zealand 's aid will support the expansion of existing economic activities and help to generate new ones, and in doing so will create jobs and other opportunities. This is especially important in order to help meet the ambitions of the region's growing number of young people.

How do cross-cutting issues and the Millennium Development Goals fit with NZAID's mandate?

Cross-cutting and thematic issues (including gender, the environment and human rights) will continue to be pursued through New Zealand 's ODA programme as a means to ensure good development outcomes and manage risks.

New Zealand 's ODA programme will pursue concrete, measurable results through programmes that are well coordinated with other donors, especially Australia , and closely aligned to partner country needs.

This reflects the Prime Minister's agreement with his Australian counterpart on the need for closer cooperation on development in the Pacific, especially helping Pacific island countries achieve the Millennium Development Goals.

Economic development provides the resources needed to achieve and maintain the internationally agreed health, education and other poverty reduction objectives.

Back to top

Will New Zealand 's ODA focus only on the Pacific?

NZAID's mandate puts the Pacific at the forefront of New Zealand 's efforts and the region will receive an increased proportion of New Zealand 's ODA.

While the Pacific will be the core focus of New Zealand 's aid efforts, contributions to development efforts in Asia, Africa, Latin America and through multilateral agencies such as the United Nations and the World Bank will be maintained.

New Zealand will also continue to respond to humanitarian emergencies when the occur.

 

return to | Frequently asked questions