Overseas aid is often discussed primarily through a moral lens, and rightly so. As a faith-based organisation, Caritas Australia's commitment comes from a clear call to stand in solidarity with those facing the greatest need. We recognise people overseas as our brothers and sisters, and we act accordingly.
However, there is another case for overseas aid that deserves just as much attention: aid as a smart, disciplined investment. From investment markets to geopolitics, the lesson is consistent: underinvestment today leads to instability and far higher costs tomorrow. At its core investment is the allocation of $x of capital from current resources so that you have more than $x available tomorrow. In this context, overseas aid functions much like preventative capital, with modest, sustained investment reducing systemic risk over time. As retired Admiral Chris Barrie, former Chief of the Defence Force, has noted “Investing in aid is one of the smartest security strategies we have. It builds resilience before crises escalate into conflict.”
This is not an abstract idea. Australians intuitively understand it. New polling from Safer World for All shows 68% of Australians agree that overseas aid contributes to security and stability in our region. This reflects broad public recognition of the role aid plays in strengthening disaster preparedness, climate resilience, and social stability.
A historic pullback at the worst possible time
This public understanding makes the current global trend of aid rollbacks deeply concerning. According to new analysis from the OECD, official development assistance looks to have fallen by 23% in 2025. This represents a historic decline driven by budget cuts from advanced economies, not by any reduction in need.
Crucially, this decline comes at a moment of compounding risk. Climate shocks are increasing in both frequency and severity. Geopolitical conflict and displacement remain elevated. Economic fragility continues to undermine hard won progress across many regions. Pulling back aid now is the equivalent of deferring maintenance during stress testing, precisely when resilience matters most.
For anyone familiar with the investment markets I work in outside my role as a Director on the board of Caritas Australia, the analogy is clear. Deferred maintenance or underinvestment leads to progressive decline in performance and eventual system failure. Small cracks in bridges or roads become structural faults leading to minor damage and eventually escalating into collapse. The eventual repair bill, and cost of disruption, is always far higher than the cost of steady upkeep – an ounce of prevention is worth a pound of cure.
Australians see aid as risk prevention, not charity
Public attitudes strongly support this investment mindset. Safer World for All polling shows 74% of Australians want overseas aid maintained or increased. Yet there is a significant perception gap. Most Australians believe aid already exceeds 1% of the federal budget, when in reality it accounts for just 0.65%. Therefore, there is clear space for ambition when it comes to Australia investing in its global neighbours.
This support is both values-driven and strategic. The Safer World for All polling shows 79% of Australians agree aid should help communities respond to disasters and reduce poverty, reflecting the moral case. Meanwhile, 75% agree aid helps Australia make and keep friends in an uncertain world, demonstrating support for strategic outcomes also.
Preventing crises delivers the highest returns
The strongest returns, both financial and human, come from preventing failure rather than responding after collapse. This is as true for shoring up a bridge as it is for investing in disaster preparedness, climate resilience, and poverty prevention. Notably, 10 of Australia’s top 15 trade partners are countries to which Australia once provided aid, demonstrating aid’s role as a long-term investment that delivered enduring economic and diplomatic dividends.
Late intervention, by contrast, is always more expensive financially, politically, and morally. Most of us know this and so practise, or aspire to practise, early intervention in our own lives. We know ignoring a strange sound from our car engine can lead to financial regret, and the same applies globally.
A fixable problem in an overseas community, such as a climate-induced crop failure, should be addressed with a short-term emergency food program and a long-term sustainable agriculture program before it escalates into food insecurity and deepening poverty. However, when left unchecked, it may lead to displacement and conflict, which carries with it a much greater financial and human cost.
Aid as a prudent national investment
Overseas aid represents a tiny share of government spending, yet delivers disproportionate returns in stability, security, and regional trust. As the Federal Budget approaches, the question is not just generosity, but strategic judgment. Protecting aid is a test of long-term thinking, and of governing with the same prudence responsible investors apply every day.
In an uncertain world, overseas aid is not a luxury. It is one of the most reliable tools we have to manage risk, build resilience, and protect our shared future.
Gerald Stack is Chief Executive Officer at MFF Capital Investments Ltd and has more than 35 years’ experience across accounting, finance and investment. He is a Director on the board of Caritas Australia.
Safer World for All is a cross-partisan Australian campaign building broad public and political support for smart, effective Australian aid. Safer World for All is a joint initiative of Micah Australia, The Australian Council for International Development (ACFID), and Global Citizen.
