A significant number of government departments and agencies are engaged in work overseas that either directly or indirectly conveys to the world a positive image of Australia. The committee commended the work of Australia's government departments and agencies, the cultural and educational institutions and the many private organisations that are actively engaged in promoting Australia's reputation overseas. Many of these organisations are working quietly behind the scenes and, through word and deed, are helping to secure a presence for Australia on the international stage. They are helping to build a reputation that will hold the country in good stead.

In the May 2007 Budget, the Australian government provided $20.4 million over four years to enhance Australia’s cultural diplomacy and improve market access for Australia's cultural exports. The committee welcomes the increased funding allocated to cultural diplomacy. Undoubtedly it will allow Australia's cultural institutions to make an even larger contribution to Australia's image abroad.

The committee notes, however, that Australia is in intense competition with other countries also seeking to be heard on matters of importance to them. To ensure that Australia's public diplomacy efforts are not overshadowed in the highly contested international space, Australia must ensure that it takes advantage of opportunities to capitalise on the positive outcomes from its many public diplomacy activities. The committee identified some areas where it believes Australia could improve its public diplomacy achievements. For example, one pertinent observation made during the inquiry was that 'the whole [of Australia's public diplomacy] is not as great as the sum of the parts. The committee was particularly concerned about: the low level of interest in, or awareness of, Australia's public diplomacy by many Australians; the lack of methodical and long-term research into attitudes toward Australia by countries that are of significance to Australia; the effectiveness of Australia's whole-of-government approach to public diplomacy in producing a cooperative, coordinated and united effort by the many agencies and organisations that contribute to, or have the potential to contribute to, Australia's public diplomacy, including Australia's diaspora; DFAT's ability to meet the growing challenges of conducting public diplomacy in a fiercely contested environment including matters such the resources devoted to public diplomacy, staff training and the role of locally engaged staff; the need to ensure that those responsible for managing and delivering public diplomacy programs are taking full advantage of advances in technology to reach the global audience; and the apparent absence of appropriate performance indicators suggesting that the Department of Foreign Affairs and Trade does not have mechanisms in place to monitor and assess adequately the effectiveness of its public diplomacy programs.

In light of these factors, the committee made a number of recommendations.