Explanatory Notes - Department of Foreign Affairs and Trade



Explanatory NotesAtlas MethodThe Atlas method is a conversion factor used by the World Bank to estimate and compare the size of economies in terms of gross national income. Its purpose is to reduce the impact of exchange rate fluctuations in the cross-country comparison of national incomes.The conversion for any given year is the average of a country’s exchange rate for that year and its exchange rates for the two preceding years, adjusted for the difference between the rate of inflation in the country and international inflation. Australia AwardsAustralia Awards are international scholarships and fellowships funded by the Australian Government. They offer an opportunity for people from developing countries, particularly those countries located in the Indo-Pacific region, to undertake study, research and professional development in Australia and for Australians to do the same overseas. Australia Awards are a whole of Australian government initiative bringing together Scholarships and Fellowships administered by the Department of Foreign Affairs and Trade (DFAT); the Department of Education (Endeavour Scholarships and Mobility Grants); and the Australian Centre for International Agricultural Research (John Allwright and John Dillon Fellowship).Australia Awards Pacific Scholarships, a scheme under the broader Australia Awards banner, provide people from Pacific developing countries with opportunities to study at selected education institutions in the Pacific region. Participating countries include Federated States of Micronesia; Fiji; Kiribati; Marshall Islands; Nauru; Palau; Papua New Guinea; Samoa; Solomon Islands; Tonga; Tuvalu; Vanuatu; and Wallis and Futuna.Australian Non-government Organisation Co-operation ProgramThe Australian Government provides funding through the Australian Non-government Organisation Cooperation Program (ANCP) to support the development activities of accredited Australian Non-Government Organisations (NGOs). The ANCP supports community-based projects which have a direct and tangible impact on reducing poverty in developing countries. These projects span a range of sectors, including education, health, water and sanitation, food security and economic development. The ANCP requires NGOs to contribute their own funds, raised from the Australian community, to their ANCP projects.Australian Volunteers The Australian Volunteers program provides opportunities for skilled Australians to contribute to the Australian Government's aid program. The Australian Volunteers for International Development (AVID) program concluded on 31 December 2017 and was replaced by the new Australian Volunteers program.Volunteers work with organisations overseas to enhance efforts to reduce poverty and improve livelihoods. This can include strengthening governance, empowering women and improving health or education outcomes.Bilateral Relations and EngagementBilateral Relations and Engagement refer to collaborations and exchanges with developing countries that are not considered Official Development Assistance (ODA). Engagement of this nature support shared learning through the building of people-to-people links and provide opportunities for trade development, global inclusion and cultural emersion. These relate to shared interests and challenges between developing countries and the international community. Bilateral Relations and Engagement is defined according to the following classification (developed within DFAT):Strategic policy engagement;Trade facilitation and business engagement;Collaboration in research activities or program development;Support to in-country Multilateral and Non-Government Organisations;Art and culture collaboration;Sport and recreation collaboration; andForums, workshops or conferences that facilitate network development. English Language Intensive Course for Overseas StudentsAustralia’s English Language Intensive Course for Overseas Students (ELICOS) is designed for students who require English language training before commencing formal studies in Australia. ExportsRefer to Merchandise Trade Exports.Gender EqualityGender equality is central to economic and human development and to supporting women’s rights in a country. Equal opportunity for women and men supports economic growth and helps to reduce poverty. Removing inequalities gives societies a better chance to develop. When women and men have relative equality, economies grow faster, children's health improves and there is less corruption. Gender equality is an important human right.Gender equality data presented in this publication represents Australia’s efforts in supporting gender equality improvements in developing countries.Global Poverty LineThe Global Poverty Line (GPL) is a measure used to assess the proportion of a country’s population living without sufficient means to support minimal living requirements, i.e. the proportion of people living in poverty.The GPL incorporates national poverty lines from some of the poorest countries in the world and converts the lines to a common currency by using purchasing power parity (PPP) exchange rates. The PPP exchange rates are constructed to ensure that the same quantity of goods and services are priced equivalently across countries.In 2015 the international poverty line was reported as $1.90 per person per day (in PPP terms).Data are compiled through the World Bank, Development Research Group. This is based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are from the Luxembourg Income Study database.Gross National IncomeGross National Income (GNI), compiled through the World Bank, is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Data are in current U.S. dollars. World Bank GNI values, calculated in national currency, is usually converted to U.S. dollars at official exchange rates for comparisons across economies, although an alternative rate is used when the official exchange rate is judged to diverge by an exceptionally large margin from the rate actually applied in international transactions. To smooth fluctuations in prices and exchange rates, a special Atlas method of conversion is used by the World Bank (refer to Atlas Method).Gross National Income per capitaGross National Income (GNI) per capita data is compiled using the World Banks national accounts data and OECD National Accounts data files. Gross national income has been converted to U.S. dollars using the World Bank Atlas method and divided by the midyear population. GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. GNI, calculated in national currency, is usually converted to U.S. dollars at official exchange rates for comparisons across economies, although an alternative rate is used when the official exchange rate is judged to diverge by an exceptionally large margin from the rate actually applied in international transactions. To smooth fluctuations in prices and exchange rates, a special Atlas method of conversion is used by the World Bank (refer to Atlas Method). ImportsRefer to Merchandise Trade Imports.Infant MortalityThe infant mortality rate is the number of infants dying before reaching one year of age, per 1,000 live births in a given year. The United Nations (UN) Inter-agency Group has developed estimates for Child Mortality Estimation (UNICEF, WHO, World Bank, UN DESA Population Division) at . Projected data are from the UN Population Division's World Population Prospects; and may in some cases not be consistent with data before the current year.International ODAThe Organisation for Economic Co-Operation and Development (OECD) compile development flow (ODA) statistics for all donors. Further information is available from stats..Investment PrioritiesData presented in this publication reflect Australian Government priorities, based on concepts defined within DFAT:Infrastructure, trade facilitation and international competitiveness;Agriculture, fisheries and water;Effective governance: policies, institutions and functioning economies;Education and health;Building resilience: humanitarian assistance, disaster risk reduction and social protection;Gender equality and empowering women and girls;General development support.Life ExpectancyLife expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life. Data are derived from male and female life expectancy at birth from sources such as: UN Population Division World Population Prospects, Census reports and other statistical publications from national statistical offices, Eurostat: Demographic Statistics, UN Statistical Division. Population and Vital Statistics Report (various years), U.S. Census Bureau: International Database, and Secretariat of the Pacific Community: Statistics and Demography Programme.Merchandise TradeAustralia's international merchandise trade statistics are compiled in broad agreement with the UN standard which provides the international framework under which the statistics are compiled. Merchandise trade statistics are derived by the Australian Bureau of Statistics (ABS) from information provided to the Australian Customs and Border Protection Service by exporters and importers. Merchandise Trade ExportsMerchandise trade exports are valued at the free-on-board (f.o.b.) basis at the Australian port-of-shipment. Charges for distributive services provided beyond the customs frontier are not included (e.g. international freight and insurance charges).Merchandise Trade ImportsMerchandise trade imports are valued at the Australian Customs Value for Australian data. This is based on the price actually paid, provided the buyer and seller are independent, on a f.o.b. basis, i.e. charges and expenses involved in delivering the goods from the place of exportation to Australia are excluded.Migrant RemittancesPersonal transfers consist of all current transfers in cash or in kind made or received by resident households to or from non-resident households. Data on remittance inflows and outflows are compiled by the World Bank.New Colombo PlanThe New Colombo Plan is a signature initiative of the Australian Government which aims to lift knowledge of the Indo Pacific in Australia by supporting Australian undergraduates to study and undertake internships in the region. The New Colombo Plan involves a scholarship program for study of up to one year and internships or mentorships, and a flexible mobility grants program for both short and longer-term study, internships, mentorships, practicums and research.Non-AwardNon-Award enrolments do not result in an award (or qualification) that is recognised under the Australian Qualifications Framework. Australian non-award courses include two broad types: foundation and other enabling courses; and mobility courses, including study abroad and study exchange programs. Non-award study is designed to allow students to pursue a personal interest, develop professional competence in an area of specialisation.Official Development AssistanceOfficial Development Assistance (ODA), as defined by the DAC, consists of flows to countries and territories on the DAC List of ODA Recipients and to multilateral development institutions which are provided by official agencies, including state and local government, or by their executive agencies and:Is administered with the promotion of the economic development of developing countries as its main objective; andIs concessional in character and conveys a grant element of at least 25 per cent. In the case of non-grants finance:45 per cent in the case of bilateral loans to the official sector of Least Developed Countries and other Low Income Countries (calculated at a rate of discount of 9 per cent);15 per cent in the case of bilateral loans to the official sector of Lower Middle Income Countries (calculated at a rate of discount of 7 per cent); 10 per cent in the case of bilateral loans to the official sector of Upper Middle Income Countries (calculated at a rate of discount of 6 per cent); and10 per cent in the case of loans to multilateral institutions (calculated at a rate of discount of 5 per cent for global institutions and multilateral development. Official Support to Developing CountriesAustralian Engagement with Developing Countries: Bilateral Relationships at a Glance, 2016-17, incorporates total Official Support across the Australian public sector. This report presents a snapshot of Australia’s development cooperation with developing countries, multilateral and bilateral development agencies, civil society organisations and the private sector.The concepts contained within this publication were developed by the DFAT and are consistent with an international agenda of reporting total support, including the Organisation for Economic and Development (OECD) Total Official Support for Sustainable Development (TOSSD).The statistical data in this publication are based on data extracted in April 2018.Other Official FlowsOther official flows (OOF) are official sector assistance transactions which do not meet the Official Development Assistance (ODA) criteria, i.e. transactions by the official sector, not private, that are not development-motivated or not concessional, and include:Grants to developing countries for representational or essentially commercial purposes;Official bilateral transactions intended to promote development but having a grant element of less than 25 per cent;Official bilateral transactions, whatever their grant element, that are primarily export facilitating in purpose. This category includes by definition export credits extended directly to a developing country by an official agency or institution (official direct export credits);The net acquisition by governments and central monetary institutions of securities issued by multilateral development banks at market terms;Subsidies (grants) to the private sector to soften its credits to developing countries; andFunds in support of private investment.Partner CountryPartner country refer to bilateral partner countries that Australia collaborates with in the delivery of official support to achieve mutually agreed objectives. Peace and Security Assistance and SupportPeace and security assistance and support is a DFAT defined concept and is consistent with an international agenda of reporting of total official support, including the DAC’s TOSSD. The concept reflects the effort additional to ODA provided by the Australian Government to support peace building and stability. The elements are considered essential for sustainable development. These concepts are defined according to the following classification: Peacekeeping missions - other non ODA humanitarian support provided by defence and security forces; Military and Police academy education exchanges;Other civil service policy and field training exchangesTransnational crime;Infrastructure, cyber and monetary security; andAnti-poaching, wildlife and marine resource protection.PopulationThe World Bank publishes country populations based on the de-facto definition of population, which counts all residents regardless of legal status or citizenship. The values shown are midyear estimates. Data have been compiled using UN Population Division World Population Prospects, Census reports and other statistical publications from national statistical offices, Eurostat: Demographic Statistics, UN Statistical Division Population and Vital Statistics Report.Purchasing Power ParitiesPurchasing power parities (PPPs) are the rates of currency conversion that equalise the purchasing power of different currencies by eliminating the differences in price levels between countries. In their simplest form, PPPs show the ratio of prices in national currencies of the same good or service in different countries. PPPs are also calculated for groups of products and for each of the various levels of aggregation up to and including Gross Domestic Product (GDP). The basket of goods and services priced is a sample of all those that are a part of final expenditure: household consumption, government services, capital formation and net exports, covered by GDP. Resident Australian populationResident population data are compiled as part of the 2016 Census of Population and Housing by the ABS. The concept of usual residence refers to all people, regardless of nationality, citizenship or legal status, who usually live in Australia, with the exception of foreign diplomatic personnel and their families. It includes usual residents who are overseas for less than 12 months over a 16-month period. It excludes overseas visitors who are in Australia for less than 12 months over a 16-month period.RoundingDiscrepancies may occur between totals in this publication due to rounding.Seasonal WorkersThe Seasonal Worker Programme contributes to the economic development of nine participating Pacific Island countries and Timor-Leste, by providing access to work opportunities in the Australian agriculture sector, accommodation sector in selected locations and tourism sector (the Northern Australia tourism pilot). This offers employers in the agriculture sector and employers in selected locations in the accommodation and tourism sectors access a reliable, returning workforce when there is not enough local Australian labour to meet seasonal demand. Data are compiled through the Australian Department of Home Affairs.Total Official Sustainable SupportAt present there is no international framework for reporting detailed Official Sustainable Support. The framework presented in this publication has been developed within DFAT incorporating (where known) aspects of the DAC’s Total Official Support for Sustainable Development (TOSSD). The DFAT framework has been developed to track the different types of engagement including private sector leveraging; bilateral and strategic policy engagement; and peace and security.Type of EnrolmentThe Australian Department of Education compiles International student data. This includes enrolment data for all education sectors (Higher Education, Vocational Education, Schools and ELICOS). Enrolments are allocated to sectors on the basis of their course level within the Australian Qualifications Framework (AQF). International student enrolment data counts actual course enrolments. Data in are based on December 2016 enrolments.United Nations Human Development IndexThe Human Development Index (HDI) is a measure created by the UN to rank the well-being of a country and its population. The index emphasizes that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living. The dimension for each component is measured by: Life expectancy at birth for health;Mean years of schooling for adults aged 25 years and over plus the expected years of schooling for children of school entry age for education; andGross national income per capita for the standard of living dimension. The HDI uses the logarithm of income, to reflect the diminishing importance of income with increasing GNI. The scores for the three HDI dimension indices are then aggregated into a composite index using geometric mean. The HDI simplifies and captures only part of what human development entails. It does not reflect on inequalities, poverty, human security, empowerment, etc. VisitorsAdministrative information on persons arriving in, or departing from, Australia is collected via various processing systems, passport documents, visa information, and incoming passenger cards. Aside from persons travelling as Australian or New Zealand citizens, persons travelling to Australia are required to provide information in visa applications. These administrative data are collected by the Australian Government Department of Home Affairs (Home Affairs) under the authority of the Migration Regulations 1994 made under the Migration Act 1958.Overseas arrivals and departures statistics relate to all recorded movements of travellers who cross Australia's international border. The statistics record the number of movements of travellers rather than the number of travellers (i.e. multiple movements of an individual traveller during a given reference period are each counted separately). It includes the movements of all travellers regardless of their nationality, citizenship or legal status. The statistics have been rounded.The statistics on country of residence or main destination, and country of embarkation or disembarkation have certain limitations because of reporting on passenger cards. For example many travellers just list the UK on their passenger card, thus England, Scotland, Wales, Northern Ireland, Guernsey, Jersey and the Isle of Man are often combined to be the United Kingdom, Channel Islands and Isle of Man (UK, CI & IOM).VolunteersSee Australian Volunteers. ................
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