VI. INTERNATIONAL ASSISTANCE

The Government had indicated that it would review International Assistance in the context of its broader foreign policy review. The purposes of the program and the manner of its delivery have been reassessed to ensure that it serves clear and identifiable national objectives, and that, in an era of increasing fiscal constraints, the scarce resources dedicated to it are managed with maximum efficiency. This determination is in line with that expressed by Canadians.

As the earlier sections of this Statement indicate, International Assistance is a vital instrument for the achievement of the three key objectives being pursued by the Government. It is an investment in prosperity and employment. It connects the Canadian economy to some of the world's fastest growing markets - the markets of the developing world. And, in the long-run, development cooperation can help lift developing countries out of poverty. This means that it contributes to a stronger global economy in which Canadians, and other peoples, can grow and prosper. International Assistance also contributes to global security by tackling many key threats to human security, such as the abuse of human rights, disease, environmental degradation, population growth and the widening gap between rich and poor. Finally, it is one of the clearest international expressions of Canadian values and culture - of Canadians' desire to help the less fortunate and of their strong sense of social justice - and an effective means of sharing these values with the rest of the world.

Canada's Official Development Assistance (ODA) Program

An effective development assistance program begins with the recognition that development is a complex process and that many conditions must be met before it takes permanent root. Individuals must have equitable access to basic social services, to productive assets and to employment opportunities. Women must be able to participate fully and equally in development. Respect for human rights is essential, as are a healthy civil society and political systems that inspire confidence and trust. The basic infrastructure that underpins society must be in place, along with policies that promote sustainable economic growth with equity. And, in today's interdependent world, a society's long-term prosperity depends increasingly on access to international markets and finance. Finally, development does not last if it is not environmentally sustainable.

The growing diversity of the developing world adds to this complexity. Approaches to development must take into account widely varying developing country needs and capabilities. Several developing countries have achieved remarkable rates of economic growth and are becoming important trading partners for Canada. Yet, even in these countries, large numbers have not shared in this progress and continue to live in poverty. Considerable challenges also remain in such areas as human rights and the environment. Other developing countries, especially in Africa, have seen the hard-won gains of previous decades slip away. And, increasingly, developing countries, like all others, find their future being shaped by global trends and issues, which can only be addressed successfully through international cooperation.

Given this complexity, an effective program of development cooperation - one that promotes sustainable development - must address environmental, economic, political and social issues in an integrated way, and must take cultural realities into account.

Development must be flexible, to allow Canada to work in a number of crucial areas with the most appropriate mix of policies and programs. It must also be targetted to those issues that have the most impact on development and where we can match our strengths to developing country needs.

A sound development program must be people-centred, with a focus on human development - on building capacity, which means helping women, men and children in developing countries, their communities and institutions, to acquire the skills and resources needed to sustain their own social and economic progress. An emphasis on poverty is vital - one that recognizes that there is no single approach to poverty reduction and that our efforts to help the poor must rely on an array of programs and policies working together in an integrated fashion. Finally, an effective development program must involve activities at the local, institutional and policy levels and must be built on a wide range of partnerships, at home and abroad, to bring together the best possible combination of expertise and skills. Canadian partners include NGOs, the private sector, universities and colleges, youth, professional organizations and federal, provincial and municipal governments, all of whom have long played a key role in Canada's development program. Canada also works with a number of international organizations and institutions and, most importantly, with the people and institutions of the developing world.

Canada's ODA policies should also work together with other aspects of our broader foreign and domestic policies to forge a consistent approach to developing countries and to contribute to common goals. The broader global context must also be considered. It is clear that development assistance is just one part of a larger effort - one that involves the resources of developing countries themselves and other factors, such as international trade and investment.

The following policy framework sets out four key commitments for Canada's ODA program, which have been developed in keeping with the constraints on the Government's resources. They are:

· a clear mandate and set of priorities;

· strengthened development partnerships;

· improved effectiveness; and

· better reporting of results to Canadians.

A clear mandate for Canadian ODA.

The purpose of Canada's ODA is to support sustainable development in developing countries, in order to reduce poverty and to contribute to a more secure, equitable and prosperous world.

To achieve this purpose, Canadian ODA will concentrate available resources on the following six program priorities:

Basic human needs: to support efforts to provide primary health care, basic education, family planning, nutrition, water and sanitation, and shelter. Canada will continue to respond to emergencies with humanitarian assistance. Canada will commit 25% of its ODA to basic human needs as a means of enhancing its focus on addressing the security of the individual.

Women in development: to support the full participation of women as equal partners in the sustainable development of their societies.

Infrastructure services: to help developing countries to deliver environmentally-sound infrastructure services, with an emphasis on poorer groups and on capacity building.

Human rights, democracy, good governance: to increase respect for human rights, including children's rights; to promote democracy and better governance; and to strengthen both civil society and the security of the individual.

Private sector development: to promote sustained and equitable economic growth by supporting private sector development in developing countries.

The environment: to help developing countries to protect their environment and to contribute to addressing global and regional environmental issues.

Canadian ODA will support the purpose and program priorities set out above in key countries in Africa, Asia and the Americas. Within these programming priorities, ODA will be expanded in sectors important to both Canada and the developing countries, such as agriculture, forestry and fisheries.

Recognizing the importance of ODA, the Government remains committed to improving its effectiveness and to making progress towards the ODA target of 0.7% of GNP when Canada's fiscal situation allows it.

Canada will continue to provide most of its ODA to low-income countries. Africa will continue to receive the highest share of resources in keeping with the immense challenges facing that continent. Programming there will be firmly rooted in individual countries but support for regional initiatives will grow as they assume greater importance.

The assistance program will also reflect the growing importance to Canada of our relations with our own hemisphere and will help countries in Latin America and the Caribbean to achieve sustainable development. Similarly, programs in the Asia-Pacific region will reinforce broader Canadian efforts to foster long-term relationships and help countries address key developmental issues.

A commitment to strengthening partnerships

A wide range of development partners in Canada, along with a large number of international organizations and, most importantly, the people and institutions of developing countries, play a vital role in the development of policy and in the planning and delivery of Canada's ODA. Their contribution is essential to providing the range of expertise, knowledge and resources required to meet the many diverse challenges of international development.

Canadian partners are a key source of the skills, know-how and technology that are needed to promote sustainable development. International institutions and organizations are crucial to the establishment of a rules-based global governance system. Many of the most pressing challenges facing national governments - in developed and developing countries - are global in scope and can be addressed successfully only through concerted action in international fora and through groupings of states and organizations. Partnerships with developing countries are vital; most of the resources invested in development come from them.

Canadian youth can assist in building these partnerships, especially at the grassroots level. The Government will encourage our young people to help out in the developing world, both to enable them to gain rich experience through international cooperation, and to assist those countries where the talent and energy of Canadian youth can make a difference.

The Government is committed to strengthening these partnerships and, to do so, undertakes the following commitments:

In consultation with Canadian partners the Government will:

· sharpen the development focus of private sector linkage programs, including the Canadian International Development Agency - INC (ClDA-INC), while ensuring greater coordination among DFAIT, CIDA, the EDC and other departments and agencies by holding regular project-by-project consultations on CIDA-INC activities;

· develop a framework for a renewed relationship between CIDA and Canadian voluntary organizations based on the principle of complementarity of action;

· expand the number and range of personnel exchanges between CIDA and its Canadian partners, especially NGOs;

· seek ways to ensure the effective participation of Canada's academic and professional communities in development assistance programs; and

· improve coordination among government departments at the federal, provincial and municipal levels.

With international partners the Government will promote reform that helps to:

· better integrate objectives such as respect for human rights, poverty reduction, social and gender equity, and environment into the work of multilateral institutions;

· improve coordination among multilateral institutions;

· increase accountability and transparency; and

· improve developmental and cost effectiveness.

With developing country partners the Government will:

· work with developing countries and their people to help them participate more fully in the international system and global economy; and

· establish new ways to build longer-term linkages between Canadians and developing country partners to enhance their self reliance.

Improving effectiveness.

Canadians support international development; however, in a time of fiscal restraint, they are concerned that their investment in development cooperation achieves the best results possible and that Canada's ODA programs are as effective as they can be. To meet these concerns, the Government will take a number of steps to improve CIDA's operational efficiency. These steps, which will be part of CIDA's contribution to Government cost-cutting, will include the continued streamlining of the Agency's project approval and delivery process and measures to improve the cost-effectiveness of its administrative services.

The Government will work to strengthen program coherence among the foreign policy instruments pertaining to developing countries and to ensure that development programs and policies within countries and regions work together in a complementary way.

The Government is committed to focussing our efforts on a limited number of countries, while maintaining programs in other countries through low-cost, administratively-simple delivery mechanisms. We will also seek to build the capacity of developing countries to address a range of policy matters, such as human rights, including the rights of children, the environment, democratization, and the status of women.

Guidelines for Effective Programming will be adopted. These guidelines, which are based on the lessons of more than 40 years of development experience, will help to ensure that programming is based on:

· Developing country needs and participation: by responding to the needs and priorities of developing country partners and placing a strong emphasis on local participation and ownership in all stages of programming.

· Knowledge of the context: by basing program design on a thorough knowledge of local conditions and by drawing on the lessons learned, in order to inform policies and ongoing programming.

· Promoting self-sustaining activities: by focussing on achieving results that will continue to provide benefits to local citizens and sustain local support after Canadian support ends;

· Coordination with others: by working with developing country governments and institutions, international organizations and development agencies to coordinate efforts more effectively.

· Drawing on Canadian capacity: by strengthening cooperation with Canadians to ensure that Canadian know-how is put to work for the benefit of developing countries in activities where Canada has a clear comparative advantage.

Support for Central and Eastern Europe.

Canada will also maintain an active program of assistance to Central and Eastern Europe and to the former Soviet Union, while ensuring that the program is not funded at the expense of ODA priorities.

There is much at stake for Canada in this region, which continues to undergo transition: first and foremost, international security demands stability in an area that still contains powerful nuclear arsenals while the social, economic and political structures essential to peaceful transformation remain fragile. Moreover, the firm establishment of prosperous market economies and their integration into the global economy will open important trade and investment opportunities for Canada and the world.

The program will continue to respond to rapidly changing regional circumstances and Canadian interests. For it to do so, the Government will continue to rely on partnerships among the Canadian private sector, business and trade associations, NGOs, academics, ethnic communities and all levels of government. Federal funds act as a catalyst, leveraging significant project contributions from Canadian and recipient country partners.

To maximize the program's effectiveness in changing conditions, a reorganization of roles between DFAIT, which now administers it, and CIDA, will be undertaken. Policy direction will remain with DFAIT while program delivery will be transferred to CIDA. This new function for CIDA corresponds well with the activities it conducts elsewhere in the world. There will be close coordination between the two organizations over the continued development and execution of the program.

Demonstrating results.

Canadians want to be sure that their aid dollars are being used effectively, that their help is making a difference in the lives of people benefitting from Canadian assistance by increasing their self-reliance. The Government shares this concern and is committed to improving the effectiveness of Canada's International Assistance and to demonstrating its results to Canadians.

To do so, we will first ensure that results can be demonstrated by establishing clear objectives for programs and projects and by specifying realistic results that are linked to program priorities. We will improve the reporting of results to Parliament and to the public, in part through revisions to the Main Estimates - submitted annually to Parliament - to make them clearer and more results-based. The Government will also share more widely the results of evaluations and lessons learned to better inform the public, as well as Canadian, multilateral and bilateral partners, and to improve development programming. We will strengthen consultations with bilateral partners and continue support for programs which build development awareness and provide Canadians with information on Canada's development activities.

International Assistance is a vital instrument of Canadian foreign policy. It promotes prosperity and employment, protects global security and projects Canadian values and culture.