Global Changemakers

Falling Barrels of Pork: A Reflection on Tackling the GFC

Huge government spending packages might be the latest fashion in fighting the global financial crisis, but with so much money being thrown around, Simon Moss wonders how well it will all get spent.

“So, what are you going to spend your $900 on?”

It’s the question that starts conversation in recent weeks, as friends and colleagues contemplate what they’ll do with the cheque that the Australian Government is writing to millions of taxpayers. Affectionately known as “Kevin’s gift” – a reference to Prime Minister Kevin Rudd, who proposed the massive handout – the money is part of a $42 billion (about $27.5b US) stimulus package to tackle the Global Financial Crisis in Australia.

Now, as much as I and millions of Australians appreciate receiving money for nothing, I’m wondering just how well spent some of this money will be. Not the $10 billion or so that is being handed back to taxpayers – I’ve every confidence that most of us will follow the Prime Minister’s wishes and spend it on beer, skittles and plasma screen TVs.

It’s the other $32 billion dollars that I’m worried about. And, for an international comparison, it’s the hundreds of billions of dollars that Barack, Gordon, Angela and Nikolas are splurging on projects in their own countries. Much of this money is directed to stimulating the economy by increasing government investment in long term infrastructure needs like roads, buildings and broadband networks.

But with so much money, so little time to do things right, and so many people’s hands in the air, there’s an good chance that some of our money might not be all that well used. Even if it’s just a few percent of the funds, you’re still looking at a veritable smorgasbord of pork-barrel projects, billions of dollars of spending designed to get politicians re-elected and curry political favour.

As we look to the G20 and the coordination of a global response to the crisis, the question I’m pondering is how to ensure that whilst saving the world, we maintain and even strengthen the accountability mechanisms we have to make sure it’s spent well.

We need to ensure that these packages aren’t rushed through without debate or scrutiny, and that the media and public give our leaders enough space to ensure that the interventions made on our behalf are well considered. This is especially so of any coordinated international interventions agreed to at places like the G20, where the increased distance from voters seems to lead some politicians to forget who they’re representing.

Additionally, we must ensure rigorous and strong scrutiny of the money as it is disbursed and in audits afterwards. Yes, we’ll discuss whether intervention packages saved jobs and strengthened the economy, but at a more local level, we need to consider each and every project. Did it work, was it needed, and was it good value for money?

In the meantime, I hope they build something nice near me.

Simon Moss
Australia