Australia is focusing on enhancing its “soft power” to counter the rising influence of China across the Indo-Pacific region. This strategic approach has been emphasized by Matthew Maury, the chief executive of the Australian Council for International Development (ACFID), amid growing concerns about China’s expanding reach.
The Australian government recognizes that while China remains its largest trading partner, the relationship requires careful management, especially with the potential threat of military escalation regarding Taiwan. Deputy Prime Minister and Defence Minister Richard Marles has expressed that China’s rapid military development is contributing to increasing security anxiety in Australia.
Soft Power as a Strategic Tool
Maury points out that Australia’s aid programs serve as essential tools of soft power, contributing to peace and stability in the Pacific. “Australia has made it very clear that they’re not going to step back from the relationships in the Pacific,” he stated in an interview. This commitment involves a significant investment in regional aid initiatives, which Maury describes as vital for strengthening ties with neighboring countries.
The notion of soft power, originally coined by Joseph Nye, highlights the effectiveness of diplomatic influence compared to military force. In his final essay before passing in May 2023, Nye criticized the cuts to the United States Agency for International Development (USAID) under former President Donald Trump, suggesting that such actions weakened US global standing. The reduction of USAID’s budget by $400 million impacted over 120 projects worldwide, creating a gap that Australia aims to address, albeit recognizing its limitations in filling the void completely.
Discussions within the Department of Foreign Affairs and Trade are ongoing regarding how best to navigate these new challenges arising from reduced global aid, given financial constraints and geopolitical dynamics in the Pacific.
Regional Challenges and Australia’s Response
Foreign Minister Penny Wong recently outlined the Albanese government’s perspective on regional challenges, including climate change and cuts to global aid. Speaking in Fiji, she emphasized the need for collaborative efforts to ensure a peaceful and prosperous Pacific. “We are counting on each other to support the aspirations and wellbeing of our peoples,” Wong remarked, highlighting the interconnectedness of nations in addressing these pressing issues.
Climate change is particularly critical for Pacific nations, with rising sea levels posing existential threats. In 2023, the Albanese government made a landmark agreement with Tuvalu, offering refuge to its 11,200 citizens. Maury noted that Australia’s actions on climate change are being closely monitored by Pacific nations, who are keen to see tangible efforts that address their vulnerabilities.
Australia has committed to increasing its development assistance to record levels, with over $2.1 billion allocated to the Pacific, focusing primarily on health programs and infrastructure development. Wong emphasized that the government has re-prioritized aid efforts to ensure that 75 cents of every Australian development dollar supports the region.
The Australian government views aid as a strategic tool to foster peace and stability amid rising insecurity. Maury stated, “There’s a lot of data showing that investing in prevention yields a much better return on investment than responding to conflict.”
In summary, as Australia navigates its relationship with China and the complexities of the Indo-Pacific, enhancing its soft power through strategic aid and diplomatic engagement remains a cornerstone of its foreign policy. The approach not only aims to counterbalance Chinese influence but also to build resilient partnerships in a region facing myriad challenges.
