2005-CDR-Chapter-2-E

Canada: The Challenge of Doing Better John W. Foster Canada: The Challenge of Doing Better Canada: The Challenge of Doing Better John W. Foster “Alleviating world poverty is our must alter: “If we hope to achieve common cause. We must share the the MDGs, we must make radical benefits of globalization. We must changes in how we foster human give it a human purpose and a development.”3 human face.” Key members of Cabinet appear Prime Minister Jean Chrétien, to be aware that even the limited Address to the Plenary Session targets of the MDGs are in of the Millennium Summit of danger of remaining unachieved. the United Nations, As Finance Minister Ralph September 7, 2000.1 Goodale noted to the World Bank’s Development Committee in April 2004, with regard to the US$1/day poverty target, anada was part of the inau- “continuing inequalities threaten guration of the Millennium to leave millions below this CDeclaration, and will be pres- meagre threshold.” “It is clear,” ent at the five year review of the the Minister continued, that “we Declaration and the Millennium need to strengthen our efforts to Development Goals (MDGs) in ensure that the promise of the September 2005. The Canadian MDGs translates into reality for contribution to the achievement of the world’s poorest citizens.” the goals has been repeatedly noted by the current Minister of Minister Goodale summarized the International Cooperation, Aileen ingredients in the Canadian Carroll. As she stated in April 2004, approach to the MDGs: imple- “ending poverty is the overriding ment the Doha commitments, development objective of the 21st increase aid and extend the HIPC century and the aspiration of the (Heavily Indebted Poor Countries) Millennium Development Goals.”2 Initiatives sunset clause, mobilize The Minister also seems aware of the private sector creating a more the modesty of the goals them- enabling investment climate, and selves, as she noted in November improve the quality and coordina- 2004, “These goals...represent a tion of aid utilizing the Rome minimum for action.” She stated at Declaration on Harmonization. the same time that approaches Donors should focus on priorities 23 Canadian Development Report 2005 identified through the Poverty Reduction remain relevant guides to policy. Similarly Strategy Papers (PRSPs), support commitments made at the G-7/-8 on Education for All, encourage a debt Africa continue to inform policy. G-7/-8 sustainability framework and longer-term initiatives on HIV/AIDS, together with debt sustainability, and pay special atten- commitments made at the 2001 UN tion to low income countries, small island Special Session on HIV/AIDS, as well as developing states and sub-Saharan Africa. the relevant MDG, need to be taken into Minister Goodale noted that small states consideration in evaluating Canada’s may be particularly vulnerable to external response and contribution. Some of shocks given extreme “openness”, and these dimensions are touched on below. thus need help with their specific chal- lenges, with disaster mitigation and risk management. He also recognized the The 2005 Federal Budget necessity of “substantial assistance in combating the spread of HIV/AIDS”.3 Canada’s approach to international engagement is also embodied in the More recently, Minister Carroll, on the annual budgets of the federal release of the Millennium Project Report government. The February 23, 2005 in January 2005, noted that it is budget is a case in point. Three key imperative “that we remain focused on elements merit attention. longer-term objectives.” The Report gives us a “positive road map to help First, the budget provides a five-year generate new momentum for achieving commitment on foreign aid, including long-term goals by 2015”. Thus Canada the doubling of aid to Africa over the was doubling its aid budget by 2010, coming three years. The 8 per cent per working through international organiza- annum increase to official development tions to provide market access, untie aid, assistance (ODA) promised by Canada in and further debt relief. Gender and Monterrey in 2002 is confirmed to 2010. environment continue to be overarching This accrues to an overall increase of themes with sub-Saharan Africa at the $3.4 billion over five years. However, centre of efforts. 4 even if overall Canadian aid doubles over 2001/02 by 2010, as promised, Canada This and following chapters examine will be at 0.33 per cent of gross national how these priorities are expressed in income (GNI), well below the 0.49 per Canadian development assistance cent achieved in the early 1990s, and and related policies. Case studies even farther from the UN target of from Bangladesh, Bolivia and Mali 0.7 per cent. There is no commitment, explore how these priorities appear to date, to reach 0.7 per cent by 2015. from the field. There is a surprising lack of specific Clearly Canada’s commitments in reference in the budget to its impact on component areas of the Millennium Canada’s achievement of the UN target Declaration and the MDGs go far beyond of 0.7 per cent, an omission made even the particular formulations of these more apparent by the increasing number documents. Orientations to the gender of specific commitments to its achieve- dimensions of human development set ment on the part of other countries. In a by the 1995 Beijing Women’s Conference stinging editorial, “Ralph? Is that you?” 24 Canada: The Challenge of Doing Better The Globe and Mail highlighted the Development Research also by FAC. The contradiction between Finance Minister fifth pool, Crisis Response, will be jointly Ralph Goodale in his role as a member of managed. Political and priority decisions the UK’s Commission for Africa calling on as to allocation among the various pools donors to specify plans for meeting the will be made by Cabinet’s Global Affairs 0.7 per cent target, and the Minister Committee. When asked about the announcing a 2005 budget without any criteria for allocating funds, officials such plans. “Mr. Goodale should be respond that the Cabinet Committee hanging his head.”5 would be the site of a “combat of ideas”. Questions about parliamentary participa- One of the strangest rationales for tion in developing priorities, public Canada’s failure to reach 0.7 per cent is consultation, and the possible develop- that cited by Finance officials stating that ment of standards to evaluate the since Canada has such a good overall relative efficacy of particular channels economic performance and growth rate, in achieving objectives like the MDGs, it is hard to meet the target. Jeffrey remain without positive answer to date. Sachs, Director of the UN’s Millennium Thus, the new approach remains largely Project, told an Ottawa audience in a “management device” rather than April that he had never heard a worse opening doors for participation in “excuse”. Canada can’t reach the priority setting. target because it’s running surpluses and doing so well? Second, these increases are dwarfed by The Declaration and the Goals: the biggest jump in defence spending in Commitment or passing fancy two decades, a total of $12,828 billion of new money between 2005-06 and The North-South Institute set out the 2009-10. While continuing its support of case for the “achievement of human “human security” in all its dimensions security through sustainable and internationally, Canada’s money is equitable development” in its submission predominantly spent on the hard security to the International Policy Review.6 end of the spectrum. We urge prime ministerial leadership in Third, the budget previews a new utilizing the Millennium Declaration and approach to the organization and the Millennium Development Goals as a management of Canada’s International basis for Canada’s vision of the world we Assistance Envelope. The Envelope is seek to work toward. divided into five component “pools”. We propose, among other things: While the pools do not represent specific departmental commitments, each of the • A “whole of government” and a pools, with one exception, will be “whole of Canada” approach, managed by a particular government involving not only diverse departments department: Development, the largest, and agencies, but engaging provincial by the Canadian International and municipal governments as they Development Agency (CIDA); the develop global interests and International Financial Institutions (IFIs), involvement. by Finance; Peace and Security by • The introduction of legislation defining Foreign Affairs Canada (FAC); and 25 Canadian Development Report 2005 sustainable and equitable development that commitment and the significant as the fundamental objective around contribution to Iraq stand out as excep- which international policy should be tions which put the overall policy of organized and against which regular country focus in question. Similarly, the reports should be made to Parliament pressure to take on a formal role in on Canada’s contributions and “missile defence” threatened to distort achievements. debate over nationally appropriate policies for Canada’s peace and security • A role for the Global Affairs Committee contributions. of Cabinet, and a parallel Parliamentary Committee (with public participation) As for development policy, the issue in regularly reviewing Canada’s contri- remains of achieving a coherent and butions and in establishing Canada’s identifiable Canadian role in a field in “road map” toward achieving the which this nation has had a long and at Millennium Declaration and MDGs times “illustrious” record. The impor- over the coming decade. tance of innovative policies and resource utilization is perhaps greater than ever Finally, we situate Canada’s policy, when “harmonization” tends to oriented as we suggest by the dominate rhetoric and practice. The Declaration and the Goals, within an difficulty and art in doing so in a positive overall commitment to fair and inclusive manner is significant, but a strongly globalization, accompanied by a articulated development policy might be commitment to peace and security.

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