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Aid to the Pacific region is increasingly debt-driven
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Matangi Tonga
The Pacific aid landscape has stabilised but is increasingly debt-driven, says the Lowy Institute in a new report published today.
The ’Pacific Aid Map 2026’ which tracks aid and development finance flows across the Pacific, notes that Australia remains the largest Pacific Aid partner.
Australia largest Pacific aid partnerAid to the Pacific is increasingly concentrated among a few major partners, with Australia by far the largest.
China's Pacific aid remains below its 2010s peak but has stabilised around a high-visibility grant model tied to diplomatic objectives.
Chinese state-owned enterprises have become the dominant construction contractors for Pacific infrastructure, including on projects financed by multilateral development banks.