ABSTRACT

The Howard government's first term in office began with considerable optimism about development in the region due to the unprecedented success of the Asian economic miracle. The final period of the Howard government was dominated by decentralisation – the increased authority and size of AusAID at overseas posts – and the 2006 White Paper. A key catalyst for the creation of Development Import Finance Facility (DIFF) was concern that the competitors of Australian companies were being subsidised by bilateral aid programs. When Flood left for the Australian Office of National Assessments in 1995, Trevor Kanaley was the first internal candidate to be appointed head of the Australian aid program. AusAID served one minister – Alexander Downer – for the entire period and had two Directors General – Trevor Kanaley and Bruce Davis – and the organisation retained its close-knit and sociable culture. In retrospect, the whole-of-government phase proved to be both and a curse and a blessing for AusAID.