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Annual Report 30 June 2013

Our strategy and outcomes

New Zealand's foreign policy is built on strong relationships with other countries and regional and international organisations.

Our ability to achieve all our foreign and trade policy goals rests on the quality of our relationships with others, and our ability to influence them to act in a way that supports New Zealand's interests. Our challenge is to develop relationships that provide New Zealand with continuing influence across a range of possible futures.

To build a brighter future for New Zealand, the Government established the goal of 'a more competitive and internationally focused economy'. We play a central role towards achieving this goal by pursuing improved market access and trade rules for New Zealand business, through high-quality trade agreements and influencing the rules other governments apply to trade.

Our ability to turn international connections into increased exports, and economic growth, relies on a stable and secure international environment. Contributing to global security efforts, and to the development of the world's poorer nations, is therefore an indispensable part of our international engagement.

Improved sustainable development outcomes and stable government in the Pacific are essential elements of New Zealand's foreign policy objectives. The New Zealand Aid Programme continued to sharpen its focus on sustainable economic development through the use of its new Strategic Results Framework to measure the results of aid activities.

New Zealanders travel extensively for work and pleasure. Our high-quality consular services and effective response to disasters and crises abroad facilitate that travel.

MFAT works with other government agencies to achieve its goals, particularly those with an economic, security, environment, and international development focus. We also lead a coordinated approach to our key countries and regions in conjunction with business and other relevant agencies through the NZ Inc strategies.

MFAT has five outcomes that support the Government's high-level goal of 'a more competitive and internationally focused economy'. These are:

Our outcomes framework has 10 strategic priorities to guide our work, in order to enable us to achieve our goals in light of the international trends identified in the previous section.

Progress towards achieving our outcomes is detailed in the following pages.

The output performance measures in the Information Supporting the Estimates of Appropriations 2012/13 for the Votes administered by MFAT are reported in the Statement of Objectives and Service Performance.

Our outcomes framework3

Government high-level outcome

A more competitive and internationally focused economy

Inputs

MFAT's outcomes

New Zealand's security and economic interests safeguarded through its political and security relationships

Economic growth and international competitiveness advanced through New Zealand's international connections

New Zealand's interests secured through regional and multilateral engagement and effective international rules

Sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable, and prosperous world

The rights of New Zealanders abroad protected

Impacts

The impacts we sought to achieve are outlined under the respective outcomes

Strategic priorities

  • Build a more intimate and coordinated relationship with Australia that provides demonstrable and sustainable benefit to us both
  • Pursue trade and economic integration in the Asia-Pacific
  • Act to strengthen the international rules-based system to protect and advance New Zealand's interests
  • Position New Zealand to greatest advantage with the United States and China
  • Achieve influential relationships with key emerging economies
  • Improve prosperity and reduce risk in the Pacific region
  • Build comprehensive partnerships with the European Union and the Middle East
  • Help New Zealand firms to internationalise and export
  • Construct an agenda for international engagement to complement the Business Growth Agenda
  • Deliver MFAT's 20/20 modenisation programme to achieve our vision and mission

Output classes

  • Administration of diplomatic privileges and immunities
  • Consular services
  • Pacific security fund
  • Policy advice and representation: international institutions
  • Policy advice and representation: other countries
  • Promotional activities: other countries
  • Services for other New Zealand agencies overseas
  • Management of New Zealand development assistance

 

Outcome 1: New Zealand’s security and economic interests safeguarded through its political and security relationships

New Zealand's ability to secure its interests in a constantly shifting and increasingly unpredictable global environment relies on our ability to sustain and build New Zealand's international influence through a network of strong bilateral relationships.

As well as building New Zealand's presence in growing and emerging markets, our focus has been on maintaining our traditional relationships and markets, including deepening ties with the United States (US) and the European Union (EU). We are increasingly coordinating with our Australian counterparts and continue to seek to play a leadership role in the Pacific, with other countries with regional interests.

What we were seeking to achieve

MFAT sought to:

What we did to achieve this

Building a more intimate and coordinated relationship with Australia

Highlights included:

Deepening our political and security connectivity with the US

Highlights included:

Deepening our political and security connectivity with China

Highlights included:

Influencing relationships with the key emerging economies of India and ASEAN

Highlights included:

Improving prosperity and reducing risk in the Pacific region

Highlights included:

Sustaining strong and resilient relationships with the EU

Highlights included:

Building comprehensive partnerships with the Middle East

Highlights included:

Lifting New Zealand's engagement with Latin America

Highlights included:

Maintaining strong and steady ties with Canada

Highlights included:

Deepening engagement with the Caribbean

Highlights included:

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Outcome 2: Economic growth and international competitiveness advanced through New Zealand's international connections

Economic growth relies on New Zealand firms exporting and developing their ability to grow their business. A positive international regulatory environment is key to supporting this growth.

In our trade and economic work, we actively look for ways to protect and advance our trading interests, including pursuing high-quality and comprehensive free trade agreements in line with our current and future trade needs.

Collaboration across government and business is also an important focus for us in delivering results, particularly through the NZ Inc strategy work.

What we were seeking to achieve

MFAT sought to:

What we did to achieve this

The slow recovery of economic partners, following the Global Financial Crisis, has impacted on the goal of lifting exports to 40 percent of gross domestic product, with the ratio of exports to gross domestic product declining slightly to 28.7 percent for the year ended March 2013 quarter. In addition, merchandise exports in the 12 months to June 2013 are down by 2.1 percent. However, exports to China continue to expand rapidly, exports to the US are firming, and an economic cooperation agreement has been concluded with Chinese Taipei. New Zealand's exports covered by free trade agreements with partner economies increased to 48 percent in 2012 (up from 46.6 percent in 2011).

Progressing bilateral and plurilateral FTA negotiations

Highlights included:

Driving progress on Trans-Pacific Partnership negotiations

Highlights included:

Participating in East Asian-driven processes to integrate trade and investment flows

Highlights included:

Continuing progress towards a Free Trade Area for the Asia-Pacific through APEC

Highlights included:

Maintaining and adding to the gains made to date in the World Trade Organization

Highlights included:

Helping New Zealand firms to internationalise and export

Highlights included:

NZ Inc strategies

MFAT has continued to lead government agencies in the development, implementation, and monitoring of the NZ Inc country and regional strategy programme. The strategies are five-year plans of action for strengthening New Zealand's economic, political, and security relationships with key international partners. By the end of 2012/13, the Government had five such strategies in play (China, India, Australia, ASEAN, and GCC). Agencies have recently reviewed progress under the India and China strategies, both at their mid-points, and for Australia. These reviews have confirmed the successful delivery of almost all 2012/13 priority actions for trade, investment, innovation, defence, and security.

For China, the ambitious goal of doubling two-way goods trade with China to $20 billion by 2015 is tracking well.

New Zealand's economic relationship with India has not advanced as quickly as we had sought to achieve, although we have significantly increased our bilateral interaction with Indian agencies.

Constructing an agenda for international engagement

The nature of delivery against this strategic priority differs from the approach outlined in the Statement of Intent 2012-2015. Further scoping revealed that a number of important foundation projects covering political, security, and development concerns were in various stages of development. Priority was given to delivering that work. These foundation projects, along with the NZ Inc strategy programme, will be used to inform a dynamic forward agenda for NZ Inc agency CEs to drive forward. The intention to improve focus and alignment of NZ Inc agency international engagement to deliver on the Government's priorities remains the same.

 

Percentage of merchandise trade covered by trade or economic cooperation agreements

 

Share of total exports in 20126

Share of total exports in 2011

Share of total exports in 2010

Total exports to be covered by agreements10

77

66.4

64

TRADE AGREEMENTS CURRENTLY IN FORCE/SIGNED
     

NZ-Australia Closer Economic Relations (1 January 1983)

21.5

23

23

NZ-Singapore Closer Economic Partnership (1 January 2001)

1.8

1.7

1.9

NZ-Thailand Closer Economic Partnership (1 January 2005)

1.4

1.5

1.6

Trans-Pacific Strategic Economic Partnership (P4) Agreement (Singapore, 1 May 2005; Brunei, 12 July 2006; Chile, 8 November 2006)7

0.2

0.1

0.1

NZ-China FTA (1 October 2008)

14.9

12.3

11.1

ASEAN, Australia and NZ FTA (AANZFTA) (1 January 2010)7

4.3

4.3

4.8

NZ-Malaysia FTA (1 August 2010)

1.9

1.8

1.8

NZ-Hong Kong Closer Economic Partnership (1 January 2011)

1.9

1.7

2

Total exports covered by agreements in force/signed

47.9

46.4

46.3

PENDING FINALISATION

Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu on Economic Co-operation (ANZTEC) (signed 10 July 2013)8

1.8

1.9

-

NZ-GCC FTA

3.3

3.2

2.9

UNDER NEGOTIATION9

Trans-Pacific Partnership (TPP) (Australia, Brunei, Chile, Malaysia, Peru, Singapore, US, Viet Nam, Canada, Mexico)

11.3

8.6

8.8

NZ-Korea FTA

3.4

3.5

3.2

NZ-India FTA

1.7

2

2.1

NZ-Russia Belarus-Kazakhstan FTA

0.5

0.6

0.6

Regional Comprehensive Economic Partnership (RCEP) (ASEAN, Australia, China, India, Japan, Korea)

12.1

-

-

 

The proportion of New Zealand merchandise exports entering FTA markets duty-free

Trade agreements currently in force11

% of exports to FTA partner duty-free in 201112

% of exports to FTA partner duty-free in 201013

NZ-Australia Closer Economic Relations (1 January 1983)

100

100

NZ-Singapore Closer Economic Partnership (1 January 2001)

100

100

NZ-Thailand Closer Economic Partnership (1 January 2005)

51.1

56.3

Trans-Pacific Strategic Economic Partnership (P4) Agreement (Singapore, 1 May 2005; Brunei, 12 July 2006; Chile, 8 November 2006)14

Chile

85.8

85.8

NZ-China FTA (1 October 2008)

37.5

37.7

ASEAN, Australia and NZ FTA (AANZFTA) (1 January 2010)15

Indonesia

49.9

49.6

Philippines

78.1

73.6

NZ-Malaysia FTA (1 August 2010)

94.9

93.2

NZ-Hong Kong Closer Economic Partnership (1 January 2011)

100

100

Approximately 36 percent of total New Zealand merchandise exports entered duty-free into the various FTA markets. In addition, FTAs have secured favourable trading conditions for New Zealand investors and services exporters in key sectors, including a range of professional and business services.

 

New Zealand's performance on key indicators of international competitiveness improves

Indicator

Sub-indicator

2012/2013
(March Year)

2011/2012
(March Year)

2010/2011 (March Year)

2009/2010 (March Year)

NZ exports grow as a percentage of GDP16

28.7%

30.2%

29.7%

28.3%

Foreign direct investment as a proportion of GDP (calendar years17

Inward

46.7%

48.1%

47.9%

49.4%

Outwards

11.1%

12.0%

11.7%

11.5%

NZ performance on key indicators of international competitiveness improves

KOF globalisation ranking18

28 out of 207 countries

27 out of 208

25 out of 208

27 out of 208

World Economic Forum competitiveness ranking19

23 out of 144

25 out of 142

23 out of 144

20 out of 144

World Economic Forum enabling trade ranking

5 out of 13220

5 out of 132

6 out of 125

11 out of 125

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Outcome 3: New Zealand's interests secured through regional and multilateral engagement and effective international rules

New Zealand's security and prosperity depends on international security and prosperity and the willingness of other countries to respect international rules, many of which are set by the United Nations and other international organisations.

We will continue to play whatever role we can to give additional momentum to the multilateral system. We take our role in the Commonwealth seriously. We are also actively campaigning for a seat on the UNSC, which would give New Zealand a voice on major decisions regarding peace and security in this major international forum.

We are playing an increasingly active and lead role in discussions and negotiations on climate change and the broader environmental agenda, reflecting New Zealand's expertise and experience, our Antarctic governance role, and global interest in and the impact of related issues.

What we were seeking to achieve

MFAT sought to:

What we did to achieve this

Campaigning for election to the UNSC 2015-16

Highlights included:

Leading initiatives on small states and UNSC working methods reform

Highlights included:

Maintaining our engagement on human rights

Highlights included:

Clarifying New Zealand's climate change commitments

Highlights included:

Influencing negotiations for a new global climate change agreement

Highlights included:

Protecting New Zealand's defensive interests under the Convention for Biological Diversity

Highlights included:

Protecting New Zealand's strategic interests in Antarctica and the Southern Ocean and maintaining influence in the Antarctic Treaty System

Highlights included:

Providing leadership on oceans issues within the UN

Highlights included:

Supporting international security and disarmament initiatives

Highlights included:

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Outcome 4: Sustainable development in developing countries in order to reduce poverty and contribute to a more secure equitable and prosperous world

Development cooperation is a core pillar of New Zealand's international engagement. The New Zealand Aid Programme focuses on making a positive difference to people's lives in developing countries. It builds on New Zealand's comparative advantage and makes the most of partnerships in New Zealand and internationally to increase the impact of New Zealand assistance.

In the Pacific in particular, active diplomacy and significant government investment, including through the New Zealand Aid Programme, is focused on supporting sustainable economic development, strengthening security and governance, and responding to humanitarian needs.

What we were seeking to achieve

MFAT sought to:

What we did to achieve this

Within the New Zealand Aid Programme portfolio, we had four key drivers:

Consolidating focus on sustainable economic development and the Pacific

Highlights included:

Supporting stable government in the Pacific

Highlights included:

Global focus, linked to New Zealand's comparative advantage

Highlights included:

Building partnerships with third parties to deliver development outcomes

Highlights included:

Demonstrating success

MFAT uses a set of economic and social indicators to track bilateral country partners' progress over the long term. The New Zealand Aid Programme contributes to the achievement of these outcomes as one of many, alongside the efforts of the partner country itself, and other donors. Results that are attributable to the New Zealand Aid Programme are provided in the section on Vote ODA non-departmental appropriations.

Economic growth

All partner countries are expected to experience positive growth in their economies in 2013. The forecast of overall economic growth is expected to slow for our Pacific partner countries from an average of 3.3 percent in 2012 to 2.6 percent in 2013. The major contributors to this decline were Papua New Guinea and the Solomon Islands, with economic growth rates lower than projected in 2012. Growth in our Asian country partners is also forecast to be slightly lower, with growth rates for Indonesia and Timor-Leste lower than projected in 2012.

Ease of doing business

Ease of doing business is a key indicator provided by the World Bank. Three of the 13 New Zealand partner countries measured have improved their regulatory environments for starting and operating local firms. Compared with last year, Papua New Guinea, the Solomon Islands, and Indonesia have shown an improvement in their rankings. Other partner countries have stayed the same or shown a slight reduction in their rankings.

Financial stability

The current account balance as a percentage of GDP provides an indication on the level of savings or debt levels of a country. Countries recording a current account deficit have strong imports, low saving rates, and high personal consumption rates as a percentage of disposable incomes. All Pacific countries partners had a current account deficit in 2012 ranging from 5.8 percent of GDP for the Solomon Islands to 26.6 percent of GDP in Kiribati. In Asia, Indonesia recorded deficits in 2012, whereas Afghanistan and Timor-Leste recorded surpluses.

 

Progress in sustainable development in partner countries

Timor-Leste

10.0

9.5

339.4

153.5

169

169

0.571

0.576

9.2

6.7

Country27

Projected growth rate of GDP (%)22

Current account balance (% of GDP)23

Ease of doing business ranking24

Human development index (HDI)25

Net ODA from all donors as % of GNI26

2012

2013

2011

2012

2012

2013

2011

2012

2010

2011

Cook Islands

3.4

3.2

4.0

n.a

n.a

n.a

n.a

n.a

n.a

n.a.

Samoa

1.0

0.9

-9.3

-10.8

55

57

0.701

0.702

26.6

16.4

Tonga

1.3

0.5

-11.0

-17.9

61

62

0.709

0.710

18.9

21.3

Tuvalu

1.2

1.3

n.a

-8.4

n.a

n.a

n.a

n.a

25.9

76.7

Fiji

1.3

2.0

-11.2

-6.1

54

60

0.700

0.702

2.5

2.0

Papua New Guinea

7.5

5.5

-36.8

-17.5

108

104

0.462

0.466

5.5

5.1

Solomon Islands

6.0

2.5

-11.2

-5.8

94

92

0.526

0.530

61.4

49.6

Vanuatu

3.0

3.2

-5.9

-6.0

78

80

0.625

0.626

15.9

11.9

Kiribati

3.5

2.0

-28.9

-26.6

115

117

0.627

0.629

10.7

27.0

Nauru

4.8

4.5

n.a.

-7.0

n.a

n.a

n.a.

n.a

n.a.

n.a.

Afghanistan

3.2

3.3

0.1

4.0

167

168

0.371

0.374

40.3

37.2

n.a = data not available in source publications.

Dependence on Official Development Assistance

The majority of partner countries have made progress towards a reduction in dependence on development assistance as a proportion of their Gross National Income compared with last year. In contrast, three Pacific countries have increased dependence, especially Kiribati and Tuvalu.

Human development index

The human development index (HDI) is a comparative measure of life expectancy, literacy, education, and standards of living of a country. Human development index values in New Zealand's bilateral partner countries slightly improved over the past year, with Indonesia and Timor-Leste showing the largest improvements.

Millennium Development Goals 2015

In the Pacific, the overall trend is that Polynesian countries are performing relatively well and are on track to achieve four of the Millennium Development Goals (MDG): universal primary education, reducing child mortality, improving maternal health, and ensuring environmental sustainability. The Cook Islands and Niue are on track for all seven MDGs and Tonga is on track for five. In contrast, Melanesian countries and Kiribati are making little progress. Papua New Guinea is unlikely to meet any of the MDG targets.

Indonesia has already met the MDG target to eradicate extreme poverty and hunger, and Timor-Leste is reported to be on track to reduce the percentage of population living below the international poverty line of US$1.25 per day. However, there has been less consistency in achieving universal primary education, with Timor-Leste not on track to meet the MDG education targets. Nonetheless, Timor-Leste has shown significant gains and is now on track to meet at least three goals.

Programme management – progress toward New Zealand Aid Programme strategic outcomes

A 5-point rating scale from poor to excellent measures annual progress in the countries where we are engaged towards the strategic outcomes identified in the strategic and programme frameworks for the New Zealand Aid Programme. In the Pacific, progress towards 50 of the 70 strategic outcomes is rated as being good or better; and in Asia, good or better progress is being made in 27 of 32 strategic outcomes.

Total New Zealand Aid Programme and country spend28

Grand Total32

435.3

495.0

510.5

437.0

Programme spend

Total country flow29

Programme

2009/10
$M

2010/11
$M

2011/12
$M

2012/13
$M

2009/10
$M

2010/11
$M

2011/12
$M

2012/13
$M

Cook Islands

7.4

18.8

19.0

6.8

7.7

18.9

19.4

8.2

Niue

11.2

23.7

16.2

13.6

11.2

23.7

16.2

13.8

Tokelau

14.6

20.5

23.3

19.2

14.6

20.5

23.3

19.2

Fiji

4.8

4.4

3.2

5.1

5.8

4.5

6.6

8.4

Kiribati

5.9

8.8

21.4

3.4

6.0

8.9

22.0

5.8

Nauru30

1.9

3.4

2.5

2.3

1.9

3.4

2.5

2.5

Papua New Guinea

24.7

28.1

23.7

14.7

25.1

31.4

27.6

26.4

Samoa

20.4

17.9

18.8

16.0

21.8

18.5

20.4

25.6

Solomon Islands

40.7

32.7

32.6

32.3

41.1

33.4

33.6

39.3

Tonga

12.7

14.2

25.1

9.8

13.0

14.6

25.5

14.1

Tuvalu

2.8

1.7

6.9

3.1

2.8

1.8

7.4

4.2

Vanuatu

20.7

16.3

16.5

7.7

21.0

16.7

18.2

14.5

Afghanistan

5.1

7.8

7.1

20.8

5.1

9.2

7.1

21.1

Indonesia

8.6

13.6

18.8

2.3

10.2

16.4

19.5

8.2

Timor-Leste

7.4

8.5

9.8

4.4

7.8

9.4

9.9

8.0

Pacific Economic Development

17.6

14.8

15.6

18.5

Pacific Human Development

15.4

19.3

20.2

10.6

Pacific Regional Agencies

15.8

20.7

20.3

19.1

Viet Nam31

12.6

7.9

9.3

-

Mekong31

-

-

-

15.7

ASEAN Regional31

20.8

21.9

24.8

5.2

Africa Regional

7.9

6.0

3.9

1.1

Latin America Regional

5.6

4.7

2.3

0.8

Scholarships

-

-

-

51.4

Partnerships

41.5

32.3

31.0

44.5

Humanitarian

9.0

16.8

20.1

14.6

Multilateral

93.1

123.8

114.1

92.1

Other Non-programme

7.1

6.5

3.9

1.9

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Outcome 5: The rights of New Zealanders abroad protected

MFAT is responsible for assisting New Zealanders in distress overseas, including in the event of a natural disaster or other large-scale emergency.

We also seek to mitigate risks to New Zealanders by raising the awareness of New Zealanders travelling and living overseas.

To meet our obligations we have sought to maintain a high standard of service and a timely response to crises. We are also placing increased emphasis on promotion of the safetravel website to improve our outcomes.

What we were seeking to achieve

MFAT sought to:

What we did to achieve this

Providing a responsive consular service

Highlights included:

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Footnotes

[1] Figures quoted for 2009/10 and 2010/11 are different to those used in the MFAT Annual Report 2010/11 due to a revision of GDP figures covering several financial years preceding.

[2] The lower the ranking the better the performance.

[3] The presentation of our outcomes framework has been slightly amended from the Statement of Intent 2012-2015.

[4] New Zealand Productivity Commission Staff Working Paper 2013/1: How integrated are the Australian and New Zealand economies? March 2013.

[5] High-level visits includes heads of government and Ministers.

[6] Data from Global Trade Atlas (https://www.gtis.com/).

[7] Only reports the contribution made by FTA partners not shown elsewhere in table.

[8] Negotiated by the New Zealand Commerce and Industry Office in Taipei and the Taipei Economic and Cultural Office in Wellington.

[9] Only reports the additional contribution made by countries in group that were not NZ FTA partners at 30 June 2013.

[10] Total is greater than the sum of individual agreements as some countries are in more than one agreement.

[11] Data from Global Trade Atlas and Statistics New Zealand (https://www.gtis.com/ and http://www.stats.govt.nz/).

[12] No new FTA utilisation results for 2013, the latest results available are 2011.

[13] The figures reported here for 2010 differ from those reported in the 2010/11 Annual Report. The 2010/11 Annual Report was based on projections from the National Impact Assessments of the respective FTAs, whereas all figures presented here reflect actual trade flows.

[14] Only reports the additional contribution made by new FTA partners.

[15] Only reports the additional contribution made by new FTA partners and also excludes Malaysia given the separate New Zealand-Malaysia FTA. Figures for Viet Nam, Brunei, Cambodia, Laos, and Myanmar are not available.

[16] Merchandise and services.

[17] Statistics New Zealand.

[18] KOF (Swiss Economic Institute) (http://globalization.kof.ethz.ch/). Rankings based on 2010 data (latest available).

[19] 2012 calendar year rank (http://www.weforum.org/reports/).

[20] The latest result available was for the 2011/12 March year (http://www.weforum.org/reports/).

[21] The Friends of Fossil Fuel Subsidy Reform is a group of non-G20 countries that support the reform of inefficient fossil fuel subsidies. Current members include Costa Rica, Denmark, Ethiopia, Finland, New Zealand, Norway, Sweden and Switzerland.

[22] ADB Pacific Economic Monitor, July 2013 & July 2012 (http://www.adb.org/publications/series/pacific-economic-monitor) and ADB Asia Economic Integration Monitor, March 2013 (http://www.adb.org/publications/series/asian-economic-integration-monitor, March 2013).

[23] ADB Basic Statistics 2012 & 2013 (http://www.adb.org/publications/basic-statistics-2013).

[24] World Bank Ease of Doing Business Ranking 2013 (http://www.doingbusiness.org/rankings).

[25] UNDP 2013 Human Development Index trends 1980-2012 (http://hdr.undp.org/hdr4press/press/outreach/figures/HDI_Trends_2013.pdf).

[26] World Bank 2013 (all donors) (http://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS).

[27] Indonesia is a bilateral partner country but is not included in the table as Net ODA makes up less than 0.1% of GNI.

[28] In 2012/13 the first year of a three-year multi-year appropriation, the programme framework has been updated from previous years. In particular a new scholarships programme has been developed. The cost of scholarships was previously included as part of bilateral country programmes in 2009/10, 2010/11, and 2011/12. Other specific changes are set out below.

[29] Total Country Flow includes amounts flowing directly to the partner country through programmes other than the bilateral programme: for example from the Scholarships, Partnerships, and Humanitarian programmes.

[30] From 2012/13 Nauru is a separate country programme. In previous Annual Reports, payments made to Nauru were included in 'Other Non-programme' expenditure. The total payments made to Nauru in prior years have been shown separately in this table for comparison.

[31] Previously Viet Nam, Laos, Cambodia, and Myanmar were shown as a separate programme or included within ASEAN Regional. From 2012/13 these have been combined as a new Mekong programme.

[32] 2012/13 is the first year of a three-year multi-year appropriation. Therefore expenditure is forecast to increase through 2013/14 and 2014/15. 2011/12 total expenditure included rollovers from the prior years in that triennium.

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