Aid,trade and the ‘new realism’: Australia's links with East and South‐East Asia

Nearly all Australia's Asian neighbours are developing countries. Some, like South Korea and Singapore are now industrialising rapidly, while others such as China, Thailand and Indonesia have economies that have shown strong growth. Their significance as trading partners for Australia has expanded accordingly. Six of Australia's 11 most important export markets, and five of the top 13 sources of imports are in East and South‐east Asia. Increased recognition of this economic relationship has been termed the ‘new realism’ of Australia's international relations. Australia's overseas development assistance program has also given increased emphasis to East and South‐east Asia, not least because of perceived trade benefits. Yet while the growth of the new realist perspective is to be welcomed, it needs to be recognised that most of the countries within the region are still poor, and not likely to catch up to Australian standards of living for many decades, if ever. Future relations between Australia and the developing countries to its north, therefore, will be best served by a development assistance program that stresses the developmental and humanitarian purposes of aid, and confines trade related concerns to the countries and situations where it is relevant.