Putting the Enhanced Cooperation Package to the test

Abstract

The A$1 billion Enhanced Cooperation Package (ECP) has quickly emerged as one of Australia's most important aid policy initiatives for some years. The ECP is a high unit cost package, with the proposed placement of 300 Australian public servants and associated activities costing as much in a year as providing a year's education to 700,000 Papua New Guinea children. It is reasonable that the ECP, as for any expenditure initiative, be expected to satisfy a cost-benefit test or at least a cost effectiveness test. The very high opportunity cost of the package, the decision to provide support without conditionality and the absence of vigorous competition in the supply of services cast doubt on the ability of the ECP to meet these tests. There are also important gaps in accountability and transparency, a result of the absence of standard project documentation and an independent monitoring regime.