Canada’s Strategic Resources: Getting the ‘net benefit’ test right—Pages 11-18

EMBASSYCANADA’S FOREIGN POLICY NEWSWEEKLY OTTAWA, WEDNESDAY, JANUARY 12, 2011 ISSUE 336 • $3.00

A year later, Haiti remains a riddle wrapped HAITI in an enigma FINDING A WAY Anca Gurzu pages 8-9

early three months after a mas- Nsive earthquake left parts of Haiti in complete devastation, Foreign Affairs Minister Lawrence Cannon stood in front of hundreds of interna- tional delegates at the United Nations in New York speaking about a long- term vision. “While today’s conference is a land- mark event in Haiti’s reconstruction, it LOBBYING should by no means be interpreted as GARY DOER TOP TARGET the end of a process,” he said on March 31. “It is one of the first milestones on page 3 a long road upon which we have just embarked, and Canada is ready to stand by Haiti’s side as long as required.” At the time, with the Afghanistan mission set to wrap up in 2011, many IVORY COAST ‘DE-RECOGNITION’

had expected, if not outright encour- PHOTO: SAM GARCIA aged, the government to make Haiti CATCHES AFRICANS Canada’s next top foreign policy pri- UNAWARES ority. There were many reasons to EMBASSY do so, including geographic proxim- A new hand or chairs on the deck of the Titanic? Prime Minister Stephen Harper started the year off with a mini-Cabinet page 5 shuffle that saw Peter Kent become Canada’s new environment minister and Diane Ablonczy take over as minister of state for ity, the large number of Haitians in the Americas. Canada, and the destabilizing effect the Caribbean nation’s continued instability was having on the region. INDIA Continued on Page 9 Key to Kent may be ability to make allies NEW QUESTIONS ON NUKE DEAL As a result, Mr. Barrio said he encountered some Carl Meyer “very unfair criticisms” of Mexico upon his arrival. He page 5 felt the chattering classes were not expressing the facts Reliving hen Mexican Ambassador Francisco Javier in the right manner. WBarrio Terrazas arrived in Ottawa in February So he was bowled over when these criticisms were 2009, his country had just become the subject of countered publicly by then-minister of state for the travel warnings from both the United States and Americas Peter Kent, who, Mr. Barrio says, seemed to the shock Canada. know the nuances of his country’s problems better than Drug violence was at record levels in Mexico, with he could ever anticipate. ■ “I didn’t have time to cry,” dozens slaughtered every day, while the US adminis- In response to concerns about Canadians in Mexico, Mr. Haitian Chargé d’Affaires tration said corruption was skyrocketing. Meanwhile, Kent told reporters at the time: “You can see that certainly the conventional tourist spots, the major tourist locations, Publications Mail Agreement #40068926 critics said the US drug policies had failed once and for Nathalie Gissel-Ménos recalls. all, and the violence marked a definitive shift in power don’t have any more risk involved than at normal times.” KENYA towards organized crime. Continued on Page 4 Anca Gurzu CRACKDOWN UNDER THE SUN n Jan. 12, 2010, 50 minutes page 19 Obefore a devastating earthquake shook the small Caribbean nation of Cabinet shuffle prompts calls Haiti, Nathalie Gissel-Ménos boarded the last Air Canada flight leaving Port-au-Prince that day. After having spent her vacation with family and for more ministers of state friends, the Haitian chargé d’affaires growing frustration over the diplomatic commu- was bound back for Ottawa. Anca Gurzu nity’s lack of access to Foreign Affairs Minister When she arrived in Montreal hours Lawrence Cannon. later, an immigration officer asked her he appointment of a new minister of state of Diane Ablonczy is the new point-person for diplo- how the situation was in Haiti. foreign affairs for the Americas in the last mats in the Americas, replacing former broadcaster HUMAN “I said ‘Fine,’” Ms. Gissel-Ménos T Cabinet shuffle on Jan. 4 has reinforced the Harper Peter Kent. In this junior Cabinet position, she will recalls a year later. “She said ‘Are you SMUGGLING government’s foreign policy focus on the region. regularly interact with and travel to Latin American sure?’ I didn’t understand where she JASON KENNEY TAKES But it has also sparked debate over the need and countries in an effort to strengthen the government’s was coming from.” ON THE CHURCH effectiveness of having similar positions to repre- priority for the area. Continued on Page 3 sent other parts of the world—especially amidst Continued on Page 4 page 10 EMBASSY, Wednesday, January 12, 2011—2 Diplomacy This Week

The Boys Club came about as a brain- storm in one informal event late last year, Canada attempts smooth where one ambassador bemoaned the Talking Points formal rigidity and impersonal quality of national day functions—the bread and but- US plans to cut 124 F-35s ter of diplomatic social engagements. The US defence budget calls for a reduc- samba diplomacy in Brazil Soon, a prototype event was held, where tion of 124 F-35 fighter jets being purchased, the founding fathers invited more people they the Fort Worth Star-Telegram reported. the Palestinian National Authority, felt were “on the same wavelength.” After its Canada has committed to purchase 65 F-35s Mahmoud Abbas, and uh, Canadian Public success, they decided to make it a regular partly on the reasoning that it will have Works Minister Rona Ambrose. affair. The rules so far (aside from the males- access to contracts on the global supply While Ms. Ambrose probably made for only clause) are that events will be held on a chain, including US purchases, so a shrinking the most telegenic presence at the event, rotational basis among the members, and that of the Pentagon order could mean less busi- AVINASH she is hardly known as a heavyweight per- they are allowed to invite other heads of mis- ness. F-35 production dates have also been sonality in the international ring. True, she sion “they deem fit to join.” pushed back in the US to accommodate GAVAI is also the minister of state for the status of Chatter House was privileged enough to further testing and tweaking of the plane’s women, but grapevine whispers revealed a witness a recent bash, and though it is not assembly line. But Canada’s assistant chief degree of annoyance, with sources indicating at liberty to identify the members, it will of the air staff, Maj.-Gen. Tom Lawson, told Chatter House that Brazil’s embassy in Ottawa wasn’t too say that the soiree was spirited, and that’s the Toronto Star that the issue should not pleased with what they perhaps perceived as putting it mildly. Oh boy! affect the Canadian commitment. he first day of the new year wit- a Canadian slight to their national pride. nessed a milestone of sorts that Although Prime Minister Stephen Harper Kicking up some (Wiki)leaks. CF trainers in demand in Kandahar breathed new life into the term “girl did mention in a statement that the inaugu- Canada is neither known for its earth- US Army Lt.-Gen. William B. Caldwell, in a power.” The event in question was ration was “an important event,” it’s unclear shattering skills in the soccer pitch, nor is new paper published by the Canadian Defence T why he didn’t send a more important and it known for earth-shattering revelations in and Foreign Affairs Institute, argues that the inauguration of Dilma Rousseff, Brazil’s first-ever female president. relevant individual such as Foreign Minister Julian Assange’s deluge of US diplomatic Canadian Forces trainers are needed by NATO In a country that is renowned for its Lawrence Cannon for the ceremony. cables through Wikileaks. The two, how- in Kandahar, the Canadian Press reported. Mr. culture of “machismo”—not to mention Though the Brazilian Embassy did not ever, amazingly achieved a degree of con- Caldwell is the top commander of NATO’s train- its massive influence in Latin America and comment on the issue, Chatter House did vergence recently. ing mission in the country. He wrote the paper the Caribbean, growing international clout manage to track down Brazil’s popular Canadian soccer enthusiasts—and before Canada announced it would extend its and matching economic progress—it was former ambassador Paulo Cordeiro de there are surprisingly many judging by the mission in Afghanistan to accommodate for a perhaps inevitable that such a watershed Andrade Pinto, who is now engaged as an viewership achieved during last year’s FIFA training mission. The government has promised moment would attract the high and mighty under-secretary general of Middle East and World Cup—will probably be heartened the troops would be centered around Kabul, from many corners of the globe. African Affairs in the Brazilian foreign minis- by the revelations, which indicates that but defence analysts point out most of the train- A total of 47 world figures confirmed try. Mr. Cordeiro, ever the consummate dip- the level of Canadian international soccer, ing slots there are already taken. their attendance at the inauguration, with lomat, was quick to rubbish claims of any ranked 84 in the world, is perhaps not as more than 12 heads of state making their perceptions of Canada/Brazil fissures. abysmal as it seems. UN’s Haiti plea turned down presence felt at the inauguration on New “Canada sent a female minister and A letter from the US Embassy to Bulgarian The UN’s head of humanitarian aid in Year’s Day. This included a huge South a person who speaks Portuguese,” Mr. authorities discusses a match between Haiti, Nigel Fisher, says the Harper govern- American presidential coterie, including the Cordeiro wrote in an email. “Rona’s father Canada and fellow soccer minnow Macedonia ment turned down a request by the UN leaders of Venezuela, Bolivia, Costa Rica, worked in Brazil and Rona spent some of on Nov. 14, 2009, which led to a humiliating and local authorities to keep its military El Salvador, Guatemala and Paraguay. The her a teenager years in my hometown of 3-0 loss for the Great White North. deployed in Haiti for a longer time after power-packed guest list also included US Salvador de Bahia. We were honoured she Under the heading “Red card for cor- last year’s earthquake, the Canadian Press Secretary of State could come…. There was no upsetting at ruption,” it states: “The Union of European reported. The military, which sent 2,000 Hillary Clinton, the embassy.” Football Association (UEFA), the governing troops, originally had a mandate to provide Prince Felipe of body of European soccer, also is investigating a short-term response effort, and did not Spain, South Enter the Boy Zone Bulgarian referee Anton Genov for his alleged have the obligation to stay. But doing so Korean Prime The new year tends to usher in many involvement in fixing an international match. would have been beneficial to the region, Minister things new resolutions, new ideas, new According to the UEFA, there were obvious said officials, and would have helped calm Chung hopes, and new doubts. In 2011, it has also irregular betting patterns prior to the interna- the panic that has gripped the nation after Un-chan, brought in a new diplomatic “Boys Club.” tional friendly match on November 14, 2009 in a disputed election, a cholera outbreak and Bulgarian Chatter House recently learned that a which Genov awarded four penalty shots dur- a rise in theft and rape. Prime select posse of less than 15 of Ottawa’s ing Macedonia’s 3:0 victory over Canada.” Minister most socially “agile” male ambassadors and The Union of European Football Foreign interference a problem: CSIS Boyko high commissioners have come together to Associations later suspended Mr. Genov in A report from Canadian Security Borisov, form a fraternity, where they can escape the light of the fact he had suspiciously award- Intelligence Service director Richard the presi- niceties and prim and proper behaviour of ed four penalty kicks, two to each side. Fadden to Public Safety Minister Vic Toews dent of the staple diplomatic circuit. The cable shows that the US Embassy says that foreign interference is still a prob- One member of the group said that word made a concerted outreach to Bulgaria offer- lem for national security, the CBC reported. of the Boys Club has come to the attention ing support to the European country’s battle Mr. Fadden wrote the report after his of some of the lady heads of missions here, against corruption in their domestic leagues. announcement on CBC in July that foreign prompting him to mischievously comment, Though Maple Leaf soccer fans may feel governments hold influence over Cabinet “perhaps we can at some point make them they owe a debt of thanks to the embattled ministers as well as other officials. The honourary Boys.” Mr. Assange for giving them at least a modi- influence on Canadian politicians comes

Photo: Sam Garcia For the time being, however, the group cum of hope, they should take note of a per- as electoral support and is “slow and is determined to keep this an XY affair, and tinent fact that should really surprise no one: methodical,” wrote Mr. Fadden, and aims to

Embassy Ottawa’s female diplomatic corps will only be Canada missed both of its own penalty kicks. develop relationships that affect perspec- Canadian Public Works Minister Rona Ambrose. able to speculate as to what actually transpires. [email protected] tive and decision-making.

The Right Honourable Michaëlle Jean, Inuit Tapiriit Kanatami presents: UNESCO Special Envoy to Haiti and National Inuit Leader Mary Simon. A Taste of the Arctic National Gallery of Canada, Great Hall Tuesday, February 1, 2011, 6:00 pm Guest of Honour: Michaëlle Jean With performances by Elisapie Issac, Taqralik Partridge and Artcirq Tickets: $195 RSVP [email protected] (613) 238-8181 ext 276 Sponsorship opportunities available

Proceeds in aid of the Avataq Cultural Institute www.itk.ca © PATRICIA D’SOUZA / ITK © PATRICIA EMBASSY, Wednesday, January 12, 2011—3 Haiti: One Year Later Reliving the shock Continued from Page 1 “Then I could breathe for myself and keep Even after the immigration officer told going,” she says. her there had been an earthquake, she just She still remembers those first weeks replied “So?” after the earthquake when people were call- “There are always some small shakes, ing in hoping they could go to Haiti and help. but nothing to worry about,” the Haitian “We were trying to let people understand diplomat says. that they could not simply go because they Reality started to sink in, however, when would block access to the most important the officer told her the presidential palace in people that were indeed bringing help,” the Port-au-Prince had collapsed. Haitian diplomat says. “If you were not a doc- “I said ‘No, you must be kidding me. That’s tor or nurse, what could you possibly do?” not possible,’” she recalls, emotionally point- This type of disorganization was also ing to a coloured poster on her desk depicting visible at the international level in the early two images. The top one portrays the majes- stages, she says. tic presidential palace before the earthquake, “At the beginning it was a mess,” Ms. while the bottom image highlights the post- Gissel-Ménos recalls. “Everybody wanted to earthquake rubble that remained. help, help was going in all directions, which Photo: Anca Gurzu There are about a dozen of these posters at certain times was counter-productive, but stacked on her desk, showing the devastation still it was coming.” Embassy of many of Haiti’s key landmarks and institu- But she describes the Canadian, and Nathalie Gissel-Ménos, the Haitian chargé d’affaires, says the one-year earthquake commemoration tions. The posters will be displayed on Jan. overall international, input as “really over- will be a very painful one for her. 12 at the Notre Dame Cathedral in Ottawa, whelming” and having “touched deeply the at the one-year earthquake commemoration hearts.” ceremony. “In our deep, deep sadness we realized “Things have been so overwhelming this we were not alone, that people were feeling year,” she says, remembering the past fran- for us,” she says. “And that helped, morally Doer most lobbied envoy tic 12 months. “I didn’t have time to cry it helped.” Ms. Gissel-Ménos describes 2010 as a year and organizations and Canadian ambassa- because I had to simply keep going and Lee Berthiaume going and going, until we could take a breath full of challenges for Haiti. Not only did the dors, high commissioners and other diplo- and feel that we could pause because there January earthquake leave hundreds of thou- mats last year. Mr. Doer was lobbied eight was nothing else that we could do.” sand of people dead and more than a million n the lead-up to the UN climate change times, while Mr. Saint-Jacques came in at four. She says the one-year commemoration homeless, but the nation also experienced Isummit in Cancun, Mexico, last November, By far the most prolific lobbying group ceremony will be a difficult one to handle. an outbreak of cholera and braced itself for Guy Saint-Jacques became a sought-after was the Canadian Council of Chief Executives, “It will be so painful for the tropical storm Tomas. target of lobbying efforts by both business which approached 15 diplomats, including me because I suppressed On top of that, violence and environmental groups, according to High Commissioner to India Joseph Caron, so much,” the Haitian diplo- erupted on the streets of government records. Ambassador to China David Mulroney, as mat says. “I could not allow I believe it Haiti after the first round of In fact, of all Canadian diplomats work- well as Messrs. Saint-Jacques and Doer. myself to be non-reactive and disputed presidential elec- ing in missions abroad, only Canada’s man After that came the Alliance of let go. There were too many tions in November, a crisis in Washington, Gary Doer, was the subject Manufacturers and Exports Canada (CME), things that depended on my was not my the Haitian diplomat hopes of more attention than Mr. Saint-Jacques, uranium company CAMECO Corp., and the pushing. I am reliving all this will be very short. who took over as climate change negotia- environmental NGO Pembina Institute, all after a year, and personally, destiny to She points out that the tor in early September. with two meetings. Pembina met with Mr. it’s very tough for me.” earthquake also destroyed The Harper government implemented Saint-Jacques twice, while CAMECO met “ many key Haitian minis- a rule in 2008 that created a new online with Stephen Millar, Canada’s ambassador First reactions be there. tries, leading to the loss database which require all lobbyists to to Kazakhstan. Ms. Gissel-Ménos still viv- of about 17 per cent of the disclose communications with politicians The database does not contain detailed idly remembers her conversa- public service workforce. and senior government officials, including information about the topics discussed, men- tion with the Montreal immigration officer and A year after the earthquake, many observ- officials at Canadian missions abroad. tioning simply “international trade,” “energy” the shock she felt when she started to slowly ers say Haiti does not look much different A search of the database revealed 36 com- and “climate change.” The database only understand the situation in her country. today than it did on Jan. 12, 2010, as many munications between different companies applies to Canada-based organizations. “[When she told me about the palace], it non-governmental organizations are still pro- struck me as something huge and very seri- viding relief work and the reconstruction ous, but I didn’t understand the magnitude process” is very slow. Lobbying of Canadian diplomats (2010) of it,” she says. This is an argument Ms. Gissel-Ménos says she feels torn about. Date Lobbyist Canadian Official Posting After retrieving her luggage, she tried to call Jan. 11 Canadian Council of Chief Executives Joseph Caron India home—her husband and the Haitian foreign “I would like myself, as a citizen of Haiti, Jan. 11 Alliance of Manufacturers and Exporters Canada (CME) Gary Doer US affairs ministry—but no lines would go through. to be able to see where all this money that Jan. 18 Canadian Council of Chief Executives Gary Doer US As she was ready to board a plane to everybody has been talking about, that has Jan. 20 University of Manitoba Gary Doer US Ottawa, Ms. Gissel-Ménos says she received been promised, where it has gone to,” she Jan. 20 MacDonald, Dettwiler and Associates Gary Doer US a call from the Canadian Foreign Affairs says. “But I also know that to be able to see Jan. 21 Canadian Chamber of Commerce Daniel Sullivan New York department wondering whether she was that, there must be a plan first, there must be Feb. 2 CAE Inc. David Sevigny Singapore some kind of administrative structure put in March 18 Canadian Council of Chief Executives Gary Doer US in Haiti. Upon arriving in Canada’s capital, Guy Saint-Jacques US—deputy head of mission while waiting to pick up her luggage in the place, because walls and houses won’t just Kevin O’Shea US (minister-political) arrival area, her eyes fell on a television simply rise [by themselves].” Paul Robertson US (minister-economic) screen that was showing the first post-earth- She encourages more communication Roy Norton US (minister-congressional) quake images from Haiti. among all parties involved in the reconstruc- Marc Lepage US (minister-energy/climate change) “That’s when I realized what was going tion efforts. March 24 Canadian Bureau for International Education Ferry de Kerckhove Egypt on,” she says, her voice strained with emo- As for 2011, Ms. Gissel-Ménos says she March 28 Canadian Council of Chief Executives Joseph Caron India would like to see it as a “peaceful, produc- Mario Ste-Marie India (minister-commercial) tion, tears in her eyes even now. “But I did March 30 Canadian Council of Chief Executives Marvin Hildebrand Mumbai not have time to cry then.” tive, constructive year.” April 19 CAE Inc. Wendell Sandford Brunei The chargé d’affaires was planning to “I really would love everything that comes April 20 University of Saskatchewan Francois Rivest Guangzhou spend Jan. 13 taking care of house errands our way to be positive, even as small as it May 11 Canadian Council of Chief Executives David Mulroney China and was supposed to return to work on Jan. 14. can be, but positive,” she says. “That’s what I June 29 Agrium Inc. Gary Doer US “But it was decided differently,” she says, truly hope and from the bottom of my heart.” July 14 Canadian Council of Chief Executives David Mulroney China adding that when she finally got to the And she says she has never stopped to Aug. 17 Toyota Motor Manufacturing Canada Inc. Jonathan Fried Japan wonder how things would have developed had Sept. 8 CAMECO Corp. Stephen Millar Kazakhstan embassy, her first job was to comfort the Sept. 9 CAMECO Corp. Stephen Millar Kazakhstan mission’s staff, whose morale was really low. she been scheduled to board a plane on Jan. 13. Sept. 22 Pembina Institute Guy Saint-Jacques climate ambassador Then it was time to get to work. “I believe it was not my destiny to be there.” Sept. 24 Canadian Council of Chief Executives Stewart Beck India “We were an embassy and we had a lot of [email protected] Sept. 27 BC Lumber Trade Council Gary Doer US responsibilities,” she says. “The community Sept. 29 Canada’s Research-Based Pharmaceutical Companies John Gero World Trade Organization was calling for help, the media was calling us Oct. 21 Canadian Council of Chief Executives Guy Saint-Jacques climate ambassador The Embassy of Haiti is hosting and we didn’t have any information, we were Oct. 26 Alliance of Manufacturers and Exporters Canada (CME) Guy Saint-Jacques climate ambassador a ceremony commemorating one year cut off from Haiti.” Oct. 26 Canadian Chamber of Commerce Gary Doer US since a 7.0 magnitude earthquake hit Nov. 12 General Electric Canada Gary Doer US Forty-eight hours after the earthquake, Ms. the country. The event will take place Nov. 17 Chrysler Canada Inc. Roy Norton Detroit Gissel-Ménos received her first contact from Wednesday, Jan. 12 at 6:30pm at the Nov. 19 Talisman Energy Inc. Daniel Costello Poland her husband in the form of a text message, Notre Dame Cathedral, 375 Sussex Dr. Nov. 30 Pembina Institute Guy Saint-Jacques climate ambassador saying he and the rest of family were alright. –Office of the Commissioner of Lobbying EMBASSY, Wednesday, January 12, 2011—4 Cabinet Shuffle Key to Kent may be ability to make allies

Continued from Page 1 est details, and can use this knowledge to tation getting out in front of the cameras and Mr. Kent’s refusal to budge also revealed It was music to Mr. Barrio’s ears. charm and impress. refusing to budge on the party line—what the itself in dramatic fashion in January 2009, “For me, it was a very nice surprise to “He managed to be quite well- Harper government might call when Israel invaded Gaza under “Operation see a minister of state knowing so well the liked. He was well-liked in the its “principles.” Cast Lead” that saw over 1,000 Palestinians realities of Mexico, and making a strong, pas- region, respected, made a good In June 2009, leftist killed versus 10 Israeli soldiers and three sionate defence of Mexico,” he said. impression, [and] people spoke Honduran president Manuel civilians. “I really identified with him. It was really favourably of him,” said Carlo Dade, Zelaya was ousted in a coup. At At one point, an Israeli air strike hit a easy to establish a friendship from the begin- executive director of the Canadian the Organization of American United Nations school in Gaza, killing 42 ning. We’ve been meeting regularly, some- Foundation for the Americas, a States, Canada did not block Palestinians. That, and other instances in the times to talk of issues of mutual concern, and think tank on relations with Latin calls for the suspension of war, prompted the UN high commissioner for sometimes just to comment or to chat about America and the Caribbean. Honduras from the group, or human rights to call for an investigation into everything and nothing in particular.” It is stories like this that could, for the peaceful return of its possible war crimes. Mr. Barrio’s story about becoming chum- more than anything else, demon- ousted president to power. But when the school was hit, Mr. Kent my with Mr. Kent, who has been described strate how he might approach However, in his own state- came out swinging for the Israelis, suggest- by critics as the Conservative government’s his new role. Although often a ment, Mr. Kent refused to call for ing it was Hamas that was to blame for the slick, smooth “salesman” of its more unpopu- brick wall in the media, privately Mr. Zelaya’s return to power, and killings because it was using civilians in the lar policies, shows just how effective Mr. he may focus on impressing key Peter Kent. maintained that Canada would school as human shields. Kent was at winning people to his side over people and earning their trust, not suspend diplomatic visas or “The burden of responsibility is on Hamas the last two years. enough for him to count them as an ally. aid to apply pressure on the new government. to stop its terrorist rocketing of Israel,” he On Jan. 4, Mr. Kent was named minister of This prompted widespread criticism, but he told reporters, when asked about his reac- the environment, one of the most high-pro- Standing up or refusing to budge? cautioned the New York Times that there was a tion to the attack. file, controversial and important portfolios Mr. Dade, who has been in contact with “context” for the events in Honduras—referring That made many furious, including the in Canadian federal government. Mr. Kent several times and whose organiza- to Mr. Zelaya’s stated determination to run for an National Council on Canada-Arab Relations, In the week since he assumed the port- tion hosted him as a speaker, said the former unconstitutional third term in office—and there which said Mr. Kent’s comments were gross- folio, opposition critics have torn strips off junior minister had “good outreach to the had to be an “appreciation” for the events that ly inappropriate considering he did not have him for being more style than substance, in Hispanic community in Canada.” As an exam- lead to the coup. access to credible information when he his defence of the oil sands as “ethical oil.” ple, he pointed to Mr. Kent’s attendance at Peter Hakim, president emeritus and made the statement. He has also been accused of being a place- the “10 Most Influential Hispanic Canadians” senior fellow of the Inter-American Dialogue, But throughout the incursion, Mr. Kent holder for the government’s lack of an environ- awards show in Toronto in late 2009. a Washington-based think tank, said it was continued to stay firm on Canada’s support for ment policy, especially after it was revealed Mr. Kent showed up with just one staffer Mr. Kent’s nuanced version of the events “Israel’s right to defend itself,” defending the that Natural Resources Minister Christian and began working the room by himself, that won out in the end as a negotiated principled position on the Middle East country Paradis will chair the Cabinet Committee on said Mr. Dade, going around impressing the settlement was reached and new—though that Canada would eventually become famous Environment and Energy Security. candidates with his knowledge of the region. controversial—elections were held. for promoting at the international level. Perhaps the biggest criticisms come from “He was completely comfortable with “He was sort of a voice of a certain degree With the “ethical oil” controversy, those who say he refuses to budge from talking to people from the region about of caution, that made a lot of sense at the time. Canadians saw a bit of the principled Mr. Conservative principles. In certain topics, where they’ve been; he’d been to several of We’re now finding how difficult it is to walk Kent in his new job as environment minister. like the political crisis in Honduras and the the countries; he was able to talk about what back some of the OAS decisions,” he said. What may be forthcoming—but less visible— 2009 war in Gaza, Mr. Kent earned a reputa- he had seen, and what Canada was doing,” “Honduras was an issue that tended to divide is how Mr. Kent approaches the key players in tion as an inflexible, unalterable politician. said Mr. Dade. After, he was “instrumental” in people along ideological lines, party lines.... his new file, especially those opposed to the But those who have worked with him say getting the group to Ottawa in order to per- Canada voted with the majority to try and Conservative approach to environmental pro- Mr. Kent is a man who knows his file well, sonally meet Prime Minister Stephen Harper. reverse the coup, but the point was how you go tection, and attempts to win them to his side. learning the slightest distinctions and small- But Mr. Kent has also made a bit of a repu- about it, and what do you do if its not possible.” [email protected] More foreign ministers of state needed: Experts

Continued from Page 1 secretary of state for Latin America and Africa he added, would be to see these ministers This is Ms. Ablonczy’s first formal foreign While Latin American countries have a from 1997 to 2002 and later in the same position travel as much as possible. policy file. For the last year she served as minis- minister designated specifically for their for Asia-Pacific from 2002 to 2003, Mr. Emerson said he noticed ter of state for seniors, while from October 2008 region, all other ambassadors still have Mr. both under the government of Jean that many times “there was to the beginning of 2010 she served as minister Cannon as their main point of contact. But Chretien. an empty chair” for Canada at of state for small business and tourism. that contact is often a source of frustration, as “The world is just too big for international meetings during The member of Parliament made the several diplomats told Embassy in November. one minister of foreign affairs to his time as trade minister. news in July 2009 after a story broke that as They talked about numerous failed attempts deal with everything,” said Mr. “The job of the foreign affairs minister of state for tourism, her office gave to make appointments to see Mr. Cannon, Kilgour, who believed Mr. Cannon’s minister is a really big job, and $400,000 federal money to a gay pride parade describing access as extremely strict and in accessibility issue is an issue of in a minority Parliament, we are in Toronto. Other Conservative MPs were contrast with their own countries’ policies. management at the department not getting out there as much displeased with the decision. Having ministers of state represent other level. “Particular ministers of state as we need to,” he said. “You In her 16 years as an MP, Ms. Ablonczy regions of the world as part of the foreign for other regions of the world always want to limit the size of also filled the roles of parliamentary sec- policy umbrella—as was the case under could put energy into dealing with the Cabinet, but if we could have retary for the minister of finance and, at previous Canadian governments—would be the diplomats from those areas.” two or three more people in that various times, opposition critic for citizen- welcome news to the diplomatic community. Secretaries of state, just like position, that would certainly be ship and immigration, health and human A diplomat from Asia, a region the Harper ministers of state, are assigned Diane Ablonczy. a good way to communicate with resources development. government has also been trying to strengthen to assist Cabinet ministers, but diplomats because the minister She has been representing the Alberta riding ties with, told Embassy that a new position of unlike the latter, they are not part of the of foreign affairs tends, as we have seen in the of Calgary-Nose Hill since 1993. Prior to being minister of state representing Asia “would be Cabinet. After coming to power in 2003, for- press, to focus more on meetings with people at elected to the House of Commons, she worked really great” as it would facilitate access and mer prime minister Paul Martin eliminated his own level.” as a teacher, managed a grain farm operation establish a communication link with a cabinet this position, using only ministers of state— and later practiced law. She received her edu- minister, not just the parliamentary secretary. although none of those positions was set up New Americas minister cation and law degrees from the University “It would speak volumes,” the diplomat to aid the foreign affairs minister. Mr. Emerson said Ms. Ablonczy will be a of Calgary. According to a 2002 article by the said. “It would speak to the face of Canada in Mr. Harper reinstituted the position of good communicator in her new position as Hill Times, Ms. Ablonczy is also a graduate of dealing with foreign relations.” secretary of state in 2007, naming Helena the minister of state of foreign affairs for the Trinity Western University, Canada’s only major One African diplomat echoed those Guergis as secretary of state for foreign affairs Americas, and she will be very active as well. accredited Christian University. She told the Hill thoughts, saying that a minister of state and international trade. She didn’t have a “She is a very thoughtful, articulate Times she joined TWU because she “came from could signal that special attention is given specific geographic focus, though she did woman,” he said. “If you can deal with people a Christian background and wanted to have to the continent—though the official wasn’t spend a great deal of time travelling through effectively, it goes a long way in foreign affairs.” faith values considered.” holding out much hope. the Americas and working on consular issues. The former trade minister also described Ms. Ablonczy is also honourary president “The signal for us is that [the Americas] Later on, the prime minister created the posi- Ms. Ablonczy as someone who has “a very of the Hoy Sun Association of Calgary, which is where the focus will be and the rest is tion of minister of state of foreign affairs for good grasp of economic issues.” represents members of the local Chinese and second or third or maybe even left out,” the the Americas, naming Mr. Kent to that role. A generally unfamiliar face to the diplo- Vietnamese communities. diplomat said. Former international trade minister matic community, Ms. Ablonczy will have Mr. Kilgour described Ms. Ablonczy as Increasing the number of ministers of state to David Emerson said appointing more junior to fill the shoes of the charismatic Mr. Kent, “intelligent and quick-learning,” someone deal with other parts of the world would increase ministers under the foreign affairs minis- who has been receiving mostly glowing who will do well in managing relations with a communication with the diplomatic corps, said ter would be beneficial in communicating reviews from Latin American and Caribbean constantly changing geographical area. former MP David Kilgour, who himself served as Canada’s messages abroad. The key element, foreign representatives in this country. [email protected] EMBASSY, Wednesday, January 12, 2011—5 News Ivory Coast crisis sets new diplomatic precedent ■ Ouattara as the legitimately-elected pres- ing on the ground…. This I believe would be a does not recognize the expulsion order Fellow African envoys ident of Côte d’Ivoire and took note of personal decision he would have to take for the because we do not recognize the regime that surprised by “de-recognition.” President Ouattara’s decision to terminate protection of himself and his family. But he was issued it,” said Mr. Harper. “We recognize the his ambassador’s functions,” a DFAIT spokes- appointed to do a job, no matter what the situ- legitimately elected leader of the Ivory Coast Avinash Gavai woman said. ation is, should be allowed to return unharmed as the head of the government.” The Ivory Coast’s embassy in Ottawa was whatever the circumstances.” said the diplomat. Canada has a strategic interest in the hesitant in answering questions on the cur- News of Mr. Bony’s “de-recognition” took troubled state, with Canadian investments in he government’s decision to “de-recog- rent status of Mr. Bony, who at the time of Canada’s African diplomatic corps by sur- that country estimated at over $1.2 billion, are Tnize” Louis Bony as the Ivory Coast’s print is still in Canada. prise, even by those known to be close to him. focused primarily in the all-important oil and ambassador took a number of African envoys “What I can say is that we have received “I had no idea this happened,” said mining sectors. Emerging sectors such as edu- by surprise and appears to be unprecedent- a note from Foreign Affairs regarding the Kenyan High Commissioner Simon Wanyonyi cation and the environment are also said to be ed in Canadian diplomatic history. departure of our ambassador,” said Nabukwesi, who noted that the attracting the attention of Canadian companies. Western powers and major African states Éric Camille N’Dry, the first coun- international community is against Experts could not remember a time have been trying to pressure Laurent Gbagbo sellor and now ostensibly the char- Mr. Gbagbo, and that “the legiti- when a sitting head of mission had been to cede presidency of the Ivory Coast to gé d’affaires. “When we received mate leader [Mr. Ouattara] should actively de-recognized or declared persona Alassane Ouattara after the provisional results this, we sent a note to our head- be able to choose his own ambas- non grata, but Canada has had troublesome of a Nov. 28 election showed Mr. Ouattara won quarters from where we are expect- sador.” trysts with foreign diplomats in recent times. with an eight percentage point margin. ing guidance. But right now the His colleague from Ghana, a In 2007, the government announced that But Mr. Gbagbo, who has ruled the world’s ambassador is still in town. That is country bordering Ivory Coast, an official from the Embassy of Sudan would top cocoa producer since 2000, has refused all I can reveal right now.” echoed that surprise. be expelled after Canada’s then-top envoy to leave his office, resulting in a standoff that Mr. Bony has not been official- Louis Bony. “I’m not aware of this,” said High there, Nuala Lawlor, was thrown out of the has killed more than 200 people and threat- ly expelled from Canada, and the Commissioner Richard Benjamin African state over accusations of “meddling” ened to reignite a civil war in a country with official diplomatic term of persona non-gra- Turkson, a friend of Mr. Bony and his wife. in Sudanese affairs. In the same year, Iran many competing tribes and rival paramili- ta—denoting a diplomat considered unac- Mr. Turkson said African diplomats in expelled Canada’s envoy to Tehran John tary groups. ceptable and usually recalled to his or her Ottawa would now have to meet to discuss Mundy, after Ottawa refused to approve On Dec. 23, the UN General Assembly rec- home nation—has not been used against him, the developments collectively. Iran’s proposed ambassador to Canada. ognized Mr. Ouattara as the new president according to DFAIT. On Jan. 6, Mr. Gbagbo’s spokesman said Politically, there was endorsement of the and accepted the credentials of Ouattara’s A senior African envoy who did not wish on state television that the Canadian and government’s move, especially in light of the ambassadorial appointee to the UN. to be identified noted that there was the pos- British ambassadors to the Ivory Coast UN measures. On Dec. 29, the Department of Foreign sibility that Mr. Bony had not returned home would have their accreditation rescinded “in “I don’t have a lot to add to what is a con- Affairs followed suit, notifying the embassy yet due to the precariousness of the situa- accordance with principles of reciprocity.” sensus. Not recognizing the Ambassador’s in Ottawa that Mr. Bony, who was appointed tion in that country that could potentially However, Prime Minister Stephen Harper legitimacy here—I believe there’s a consen- by Mr. Gbagbo in 2008, was no longer being have life-threatening consequences. told CBC News the next day that Canada sus in this country on this,” said NDP Foreign recognized as an ambassador. “For him to go back, it depends on the terms would not comply with the expulsion order. Affairs critic Paul Dewar. “Canada publicly recognized Mr. Alassane of the negotiations, and what is really happen- “The government of Canada obviously [email protected] New questions surround Canada-India nuke deal ■ Rose Gottemoeller’s meetings in New York last ing” exposes the dilemma Canada now faces. And he emphasized that the deal was a “body Canadian offi cial questions May, shows her Canadian counterpart Marius On one hand, Canada’s approval of the NSG blow” to the NPT because it essentially allowed US effort to avoid responsibility Grinius worried about how a White House offi- rule change meant that it was free to establish India to enjoy the benefits of NPT membership cial was framing a 2008 US-India nuclear deal as its own civilian nuclear deal with India, some- without having to sign on to its obligations. on nuclear rule change. not primarily a US initiative, but the result of a thing that occurred merely a month after the But Mr. Regehr said Canada’s acceptance Carl Meyer decision by an international body that counts meeting in New York, and that experts say of the new NSG rules, as well as its enthusi- Canada as a founding member. was welcomed by Canadian industry. astic nuclear industry, meant that its officials The result is that non-proliferation experts But on the other hand it means Canadian should face the music and take ownership. uestions are being raised about Canada’s are questioning whether Canada is prepared non-proliferation efforts are faced with the ”I found it surprising that the ambassador Qpending nuclear deal with India after to accept responsibility for holding India to uncomfortable position of now having to take would want to still call this the US-India deal, revelations that at least one top Canadian account in regards to nuclear proliferation. ownership of a move that originated with the US when Canada didn’t really resist the deal, government official was concerned about US “Generally, there’s a lot of countries, includ- desire to broker a deal with India—something and in fact the Canadian industry and others efforts to spread responsibility of opening up ing Canada, who are trying to get on board that has reportedly been particularly hard to in Canada were pretty keen on it,” he said. New Delhi to nuclear trade. with India and build up a commercial relation- swallow for some more experienced Canadian Canada did “very little” to resist any change The Agreement for Cooperation in Peaceful ship, and diplomatic relationship, and that’s a officials who were around during the 1974 test. at the NSG, even though other countries like Uses of Nuclear Energy, a draft of which was good thing. The extent to which Canada will Wade Huntley, a senior lecturer of national New Zealand and Germany pushed back. He signed last June by Prime Minister Stephen use that to try and build some non-prolifer- security affairs at the Naval Postgraduate said Canada made it clear “early on” that it Harper and Indian Prime Minister Manmohan ation co-operation remains to be seen,” said School in California and an expert on nuclear would go with the decision of the collective, and Singh, is expected to come into force this year. Ernie Regehr, a non-proliferation advocate and disarmament, said the need to press India on if that meant changing the rules, then so be it. It will permit a historic renewal of nuclear co-founder of Project Ploughshares. export controls and non-proliferation mea- “I don’t think there was ever the Canadian trade between Canada and India, after decades The Canadian government says its deal with sures was “a common theme” among those sense on the political side that this was a terrible of frozen relations that followed India’s use of India will “provide “international treaty level who favored accommodating India but resist- thing, and we’ve got to try and stop it,” he said. Canadian civilian nuclear technology in 1974 to assurances that nuclear material, equipment ed “the weaker Indian commitments entailed Mr. Huntley pointed out that Mr. Grinius did build and test a nuclear bomb. and technology originating in Canada will only in the Bush administration initiative.” not specifically refer to Canada as one of the The new Canada-India deal was made be used for civilian, peaceful and non-explosive In the cable, Mr. Grinius himself wondered countries who initially resisted and eventually possible by a shift in international rules that purposes by partner countries.” about the US commitment to non-prolifera- gave up, so his position is not necessarily con- occurred two years ago when the US Congress A spokesperson for Foreign Affairs Minister tion during his meeting, reportedly stating tradictory given the Canadian government’s approved its own nuclear deal with India. Lawrence Cannon said Canada will only be co- that “before India could enjoy open nuclear current enthusiasm for its new nuclear deal. That rule shift occurred because of a success- operating with certain civilian nuclear locations trade, it would have to do more in the form of Another factor is that it is possible the ful US and Indian lobby campaign convincing that have international safeguards in place.. export controls.” Ms. Gottemoeller assured Obama administration is not happy with Canada and other members of the Nuclear The diplomatic cable lays bare the friction him that “Washington will be much harder the Bush-era deal, but did not want to rock Suppliers Group—an multi-state body that between political goals and non-proliferation on India if they don’t strengthen export con- the boat of US-India reconciliation, and is mandates that civilian nuclear cooperation objectives. During the meeting, White House trols and non-proliferation measures.” now seeking a third way. This is the view of should only take place between states adher- official Adam Scheinman interjected on a ques- Jennifer Simons, a peace researcher whose ing to a long list of safeguards—to approve an tion by Mr. Grinius on how the US intended to Who’s responsible? organization is the principal sponsor of an exception for India in its policy. use the US-India nuclear deal to achieve non- Mr. Grinius’s predecessor, Paul Meyer, who international initiative that promotes the By approving this exception, Canada and proliferation ambitions, saying that “it was no served from 2003 to 2007 as Canada’s disarma- elimination of nuclear weapons. the rest of the NSG were in effect promising to longer considered the ‘US-India Deal.’” Instead, ment representative, told Embassy he agreed “This may be an attempt to distance violate the Non-Proliferation Treaty, which bans he called it “the NSG—India Cooperation,” with Mr. Grinius’s implicit assessment that it the Obama Administration from the Bush the trading of nuclear technology and materials referring to the NSG’s consensus decision. was “disingenuous” for the US to depict the deal Administration’s dangerous error by diluting to states who are not signatories. India is one of Mr. Grinius reacted negatively to that state- as an NSG decision, as it was a “direct result of responsibility from the US while carrying through only four nations—along with Israel, Pakistan ment, saying he “did not think this rebranding Washington’s unilateral move” to seal its agree- with the Agreement,” she wrote in an email. and North Korea—outside of the treaty, and was fair” and that instead, his assessment ment with India despite its non-NPT status. A US Embassy spokesperson said Mr. while it says it is considering NPT membership, was that “most NSG members ‘gave up’ and He argued that while some NSG members Obama supports Indian membership in all it has yet to make any formal move. ‘joined the bandwagon’ rather than fully sup- “were keen to profit” from the US lead in opening four export control regimes in a phased man- But a newly-leaked US diplomatic cable, porting a nuclear agreement with India.” up India to civilian nuclear trade, it would not ner, the first such public statement of support. which summarizes top US disarmament official Mr. Grinius’s objection to such a “rebrand- have happened without the US lobbying efforts. [email protected] EMBASSY, Wednesday, January 12, 2011—6 Editorial Page DON’T EXPECT EMBASSY NEWS The future of food riots n April 2009, Foreign Affairs Minister Lawrence Cannon was presented with a memo related to Canada’s diplomatic missions in Sarajevo, Bosnia-Herzegovina; Hamburg, a lot of their population cannot buy enough Germany; Cape Town, South Africa; Phnom Penh, Cambodia; and Lilongwe, Malawi. food for their families, so they go hungry. The government had already decided to close the five embassies and consulates, Then they get angry, and the riots start. I Is this food emergency a result of global but the memo in question dealt specifically with communicating those closures to for- eign governments, Canadian businesses and expatriates, and the public here at home. GWYNNE warming? Maybe, but all these droughts, The government, through the Department of Foreign Affairs and International Trade, heat waves and floods could also just be a planned to deliver diplomatic notes to host governments on April 7, 2009. That same DYER run of really bad luck. What is nearly certain day it would inform staff at the affected missions of the closures, meet with Ottawa- is that the warming will continue, and that based ambassadors and high commissioners, and notify relevant Canadian provincial, in the future there will be many more weath- territorial and federal governments as well as Canadian companies with “significant” f all the food in the world were shared er disasters due to climate change. Food interests in affected countries. Iout evenly, there would be enough to go production is going to take a big hit. However, according to the memo, which was obtained through Access to around. That has been true for centuries Global food prices are already spiking Information, “We [DFAIT] were instructed not to issue a public document in Canada.” now: if food was scarce, the problem was whenever there are a few local crop failures, While the memo to Mr. Cannon doesn’t specifically explain why Foreign Affairs was that it wasn’t in the right place, but there because the supply barely meets demand instructed not to say anything to the Canadian public, it does note that “We expect was no global shortage. However, that will even now. As the big emerging economies negative media reaction.” not be true much longer. grow, Chinese and Indian and Indonesian Just how negative? Another document predicted: “Critics will position closures as contrary The food riots began in Algeria more than citizens eat more meat, which places a great to the Government’s stated commitment to reasserting Canadian leadership internation- a week ago, and they are going to spread. strain on grain supplies. Moreover, world ally.” It went on to say Canadian businesses in affected countries “will complain about loss During the last global food shortage, in 2008, population is now passing through seven of service,” while affected host governments “will question/express concern about Canada’s there was serious rioting in Mexico, Indonesia billion, on its way to nine billion by 2050. We commitment to the bilateral relationship.” In addition, Foreign Affairs staff, “especially those and Egypt. We may expect to see that again will need a lot more food than we used to. affected, as well as former [heads of mission] may question the decisions.” Diaspora commu- this time, only bigger and more widespread. Some short-term fixes are possible. If nities and expatriates would complain, and “the media can be expected to cast a critical eye Most people in these countries live in a the US government ended the subsidies on specific closures, turning to various pundits…to validate their arguments.” cash economy, and a large proportion live for growing corn for “bio-fuels,” it would There’s no denying that these assessments are correct. The decision to close a dip- in cities. They buy their food, they don’t return about a quarter of US crop land to lomatic mission, especially an embassy or high commission, is a significant event. This grow it. That makes them very vulnerable food production. If people ate a little less is even more true in an era of globalization and increased international activity. because they have to eat almost as much meat, if more African land was brought into Yet that is no reason to keep such a decision secret. When a tough decision is made, as people in rich countries do, but their production, if more food was eaten and less it should be explained and defended. incomes are much lower. was thrown away, then maybe we could Unfortunately, trying to slip things by is a tactic the Harper government has made The poor, urban multitudes in these buy ourselves another 15 or 20 years before into an art-form, with even foreign governments caught unawares by a secret decision. countries (including China and India) spend demand really outstripped supply. A number of ambassadors and high commissions who said the announcement in February up to half of their entire income on food, On the other hand, about a third of all 2009 that they were being dropped as bilateral aid partners caught them by surprise. This compared to only about 10 per cent in the the irrigated land in the world depends on despite the fact the process was well along by the time the news broke. It’s clear the govern- rich countries. When food prices soar, these pumping groundwater up from aquifers ment was trying not to create a stir and was quietly implementing a major change in aid policy. people quickly find that they simply lack that are rapidly depleting. When the flow The same holds true for the imposition of visa requirements on the Czech Republic; diplo- the money to go on feeding themselves and of irrigation water stops, the yield of that mats at the embassy in Ottawa said they didn’t see it coming and were left scrambling as hun- their children properly—and food prices highly productive land will drop hugely. dreds of Czech summer tourists suddenly found their travel plans to Canada put in jeopardy. now are at an all-time high. Desertification is spreading in many regions, There have been ongoing reports that the Harper government is planning to close “We are entering a danger territory,” said and a large amount of good agricultural land more Canadian diplomatic missions in the near future, largely in Africa. When asked for Abdolreza Abbassian, chief economist at is simply being paved over each year. We confirmation, the government says it doesn’t respond to rumours. the Food and Agriculture Organization, on have a serious problem here. The fact is the only thing the Harper government responds to is public opinion Jan. 5. The price of a basket of cereals, oils, Climate change is going to make the polls. Its nearly single-minded focus on winning a majority government means that it dairy, meat and sugar that reflects global situation immeasurably worse. The modest tries to sneak past many decisions it feels could prove unpopular and put it in a nega- consumption patterns has risen steadily for warming that we have experience so far may tive light, even if not announcing a change will have ramifications for numerous stake- six months, and has just broken through not be the main cause of the floods, droughts holders. This is no way to run a respectable government or Canadian foreign policy. the previous record, set during the last food and violent storms that have hurt this year’s panic in June 2008. crops, but the rise in temperature will contin- “There is still room for prices to go up ue because we cannot find the political will much higher,” Abbassian added, “if, for exam- to stop the greenhouse-gas emissions. ple, the dry conditions in Argentina become a The rule of thumb is that we lose about drought, and if we start having problems with 10 per cent of world food production for winter kill in the northern hemisphere for the every rise of one degree C in average global wheat crops.” After the loss of at least a third temperature. So the shortages will grow and of the Russian and Ukrainina grain crop in the price of food will rise inexorably over the last summer’s heat wave and the devastating years. The riots will return again and again. floods in Australia and Pakistan, there’s no In some places the rioting will turn into margin for error left. revolution. In others, the rioters will become It was Russia and India banning grain refugees and push up against the borders of exports in order to keep domestic prices countries that don’t want to let them in. Or down that set the food prices on the interna- maybe we can get the warming under con- tional market soaring. Most countries cannot trol before it does too much damage. Hold insulate themselves from this global price rise, your breath, squeeze your eyes tight shut, because they depend on imports for a lot of and wish for a miracle. domestic consumption. But that means that [email protected] WITH FRIENDS LIKE THESE… “That’s just not how you treat allies, and I think tells us you better pick your friends pretty carefully in the future…. Could you imagine after Quote 9/11 if the Americans had come to the Canadian government and said, of the ‘We need help on something to do with security’ [and we said] ‘Well, only if you do something on Buy America.’ I mean, give me a break.” eek —Prime Minister Stephen Harper to QMI Agency on Jan. 7 W on the dispute with the UAE over Emirates airline.

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What is interesting to observe is the fact that propaganda of this sort has no lasting If God is impact on the short-term memories of the intended audience. For instance, during the Cold War, it was all things communist that were considered for us, who evil and therefore anyone opposed to the Soviet Union was worthy of our support. It was to this end that the US media machine sold us on the valiant Afghan mujahe- can be deen battling the evil Soviets during the 1980s. The ensuing public support allowed the CIA Photo

to furnish the Islamic extremists with sophisti- file cated weaponry, which turned Afghanistan into against us? a military nightmare for Moscow. Embassy As a result, instead of allowing the Afghan When chief of defence staff Rick Hillier described the Taliban as “scumbags and murderers,” it was a communist regime to assert central authority classic example of propaganda, Scott Taylor writes. and create a socialist state with equality for women and functioning government services such as modern medical facilities and educa- the attack, President George Bush actually I had a first-hand experience with this SCOTT TAYLOR tion, US arms and money insured that the uttered the “c” word to describe America’s during my five days as a hostage in Iraq. Islamic extremists would regain control. new war on terrorism. Wiser advisers even- My captors were Ansar al-Islam followers, In those days there was no protesting tually convinced Bush to drop the word essentially a chapter of al Qaeda in Iraq. Inside Defence of the mujahedeen’s subjugation of women “crusade” from his wartime rhetoric. Following my release, many people because Hollywood portrayed this con- However, the damage was already asked me why I had not simply explained flict as a victory for the primitive savages done. Again, thanks to Hollywood, the to them that I was a “Canadian” and not who successfully defended their religious Crusades—a series of bloody campaigns an “American.” To this I needed to explain ropaganda is a powerful weapon and freedom from communism. If you don’t fought largely between the Christian and that, in this predominantly illiterate corner one that is invariably viewed as a believe this, do me a favour and rent your- Muslim world from the 11th century to the of northwestern Iraq, the Muslim clerics necessary evil during conflicts. self a copy of Rambo III, wherein Sylvester 15th—have been dumbed down to a premise were also the educators. During my captiv- All religions of the world include Stallone fights alongside the Afghan freedom of noble white knights protecting religious ity they invariably referred to me as “The P pilgrims from rapacious Turks. Frank,” which is the generic term they a variation of the “thou shalt not kill” com- fighters. The original movie dedication is mandment and, due to our human empathy, “to the brave Mujahedeen of Afghanistan.” Reality was, of course, quite different as use to define all despised crusaders. As it is not in our instincts to kill a fellow man. More recently, the Western propaganda the majority of the Christian soldiers were, such, they were hardly going to distinguish Given that organized religions are often the machine effectively demonized the Orthodox in fact, criminals, rapists and murderers between an American and a Canadian. mask employed by profit-driven enterprises— Christian Serbs during the breakup of seeking the divine absolution promised What we need to remember when dealing be they empires or corporations—to instigate Yugoslavia to pave the way for NATO inter- to them by Pope Urban II. In a familiar with propaganda is that never in history have wars, this conundrum results in the necessity vention on behalf of the Bosnian Muslims sounding twist, Urban also promised the people fought for a cause which they believe to dehumanize our potential enemies. and Albanian Muslims in Kosovo. To level the Crusaders heavenly rewards if they were to be evil. Everyone believes they are the forc- A classic example of this would be when military playing field in Bosnia, the Pentagon killed fighting the Muslim infidels. es of good. Hitler’s stormtroopers wore belt former chief of the defence staff Rick Hillier actually helped to facilitate the importation of The French, or Frank, contingent dispatched buckles that read “Gott mit uns” (God’s with described the Taliban as being “scumbags some 1,500 foreign mujahedeen Islamic fight- to Palestine actually didn’t bother to dis- us). Only Hollywood invents characters like and murderers.” Conversely, whenever ers. That, of course, was before 9/11. criminate between Muslims and the Christian Mike Myers’s Dr. Evil. In the real world, there Canadian military officials describe the After that cataclysmic event, the Bush pilgrims they were purporting to protect; they is good and bad on both sides. sacrifice made by our soldiers, these casual- administration did its level best to convince raped and killed them both. Needless to say, Scott Taylor is editor and publisher of ties are referred to as “Canada’s sons and the West that we were now engaged in a mor- the term “crusade” invokes a totally different Esprit de Corps magazine. daughters.” tal struggle against Islam. Just five days after response from those in the Muslim world. [email protected] Wikileaks’ short-term damage, long-term gains

that over time, the image and reputation of the age of globalization, there are very few tially facilitating the work of terrorists, seems DARYL COPELAND diplomacy stands actually to benefit from practical alternatives to inter-state dialogue, to me inimical to the common good. Even if this demonstration of the trade’s relevance negotiation and compromise. This is partic- the locations are not a secret, why ease the and effectiveness. ularly true in addressing the host of issues research requirements, or make available the ooking back over the key develop- Indeed, over the interim period, several of which are rooted in science and driven by government’s estimation of sensitive targets? ments affecting international relations the State Department’s critics have allowed technology, none of which are amenable to The public revelation of government wrong- during 2010, the continuing release that their opinion of the place has improved. the application of armed force. doing or corruption usually makes good demo- Lof more than 250,000 US diplomatic Diplomats are shown to be working very Governments really have no choice but cratic and governance sense. But probity and cables stands out as especially significant. hard at their jobs, and adding unique value to keep talking, and for that reason, any disclosure are not the main issues here. The story broke just over a month ago by advocating policies, pursuing interests, costs imposed on diplomatic practice are In that respect, I have detected something and has been with us every day since, and yet and providing advice and analysis to policy likely to prove temporary. slightly curious about this episode from the there is much, much more to come. and decision-makers. On the losing end, there have in my esti- start. The WikiLeaks site—if it ever reap- The content of individual messages That case, I believe, stands. For the first mation been two principal casualties. The first pears—is not a wiki, these cables do not con- appears to have had only fleeting impact, time in many years, interest in diplomacy has is American foreign policy, and that country’s stitute “leaks,” and the entire exercise seems notwithstanding some initial concerns migrated from the esoteric margins of public overall place and standing in the world. far removed from anything which could be regarding possible damage to the fabric of consciousness into the cultural mainstream. Viewed as a whole, these cables do not associated with whistle-blowing. I see little bilateral relationships. The brand has been burnished, and the illustrate the seamless inner workings or high- in this which serves any elevated moral or Had the more sensational revelations world’s second-oldest profession may come to level strategic calculus of an empire at the public policy purpose. been introduced singly and over time, each be seen in a more sympathetic light as a result. top of its game. Instead, readers are offered Rather, it seems to have been done main- individual issue might have generated its On the other side of the ledger, a likely chronicles of something akin to imperial ly because the means were available. own momentum. Instead, even the most short-term effect could be a general chill on retreat—snapshots of defensive, rearguard Is this, then, a “Napster moment” for the newsworthy releases have been quickly diplomatic exchange. This form of international actions and generalized geopolitical disarray. state, one from which there is no turning overtaken by the appearance of newer mate- political communication is based typically on Given the magnitude of the recession still back? Perhaps. The wholesale dumping of rial, or lost in the ever-growing trove of docu- interpersonal confidence, trust and respect, the besetting the USA, for example, one might classified documents, the content of which ments available for review. very attributes which have been subverted by have expected to see intensive coverage of was often obtained in confidence, certainly The effect has been somewhat numbing. the WikiLeaks revelations. the various national responses to the global makes mischief and attracts attention. With the possible exception of a handful of dip- Higher levels of classification, more lim- financial crisis. Economic reporting, however, But is it something to celebrate? That lomatic scholars and a relatively few dedicated ited distribution, fewer written records, and has been notable mainly for its absence. is less clear. Sure, much of the reporting analysts, most readers seem already to have recourse to other forms of transmission, such That is surprising indeed, and suggests a makes fascinating reading. Yet this kind of reached or exceeded the point of overdose, or as secure telephony, can accordingly be pre- lack of priorities and direction. splatter-gun discharge violates privacy and have been distracted by the gossip and legal dicted. All of that is negative. The second casualty, ironically, may be does not align well with the rule of law. problems besetting the site’s founder. That said, governments will always have the public interest. I generally favour open- Even with waning public and media inter- It may be that some unanticipated or sala- business to transact among and between ness, transparency and disclosure, but not est, the complexity remains. We are far from cious headlines will again elicit broad inter- themselves, and that business can accumu- at all times or in all things. I would not want the end of this story. est in this data deluge. In the meantime, how- late quite rapidly. to see sensitive, pro-democracy sources in Former Canadian diplomat Daryl Copeland ever, there are several larger implications Concerns over the militarization of inter- China or Zimbabwe. for instance, exposed an adjunct professor and senior fellow at which merit more sustained examination. national policy are finally coming to the in the name of information freedom. the University of Toronto’s Munk School of In a piece penned in the immediate after- fore; given the limited possibilities associ- Similarly, serving up a list of critical infra- International Studies. math of the first round of releases, I argued ated with the remedial use of hard power in structure and facilities, and in so doing poten- [email protected] EMBASSY, Wednesday, January 12, 2011—8 Haiti: One Year Later The importance of remaining committed Progress on this front will be much hard- the nature of the partnership between the CARLO DADE er to measure than relief and rebuilding, Haitian people and the international com- and will likely not make the 10 o’clock news. munity. The cost of the election is estimated The challenge of building strong institu- at US$30 million, but was likely higher. year after the devastating earth- tions in the country is highlighted by the Canada contributed C$5.8 million while the quake, the world has once again current election mess. Haitian state contributed US$5 million. dropped in to visit Haiti. The news The election campaign did not produce a But worse than being on the hook for A is neither good nor are the photos discussion about the future of the country, nor financing an election uniformly seen by encouraging. Yet that is as much a function of was there any presentation or discussion of con- Haitians to be fraudulent and illegitimate, the unrealistic expectations as of the dysfunction crete platforms for a national agenda. Rather, international community in Haiti, including that has detracted from the truly massive and Haiti has been left with a campaign about noth- police officers from Montreal, will be forced remarkable post-disaster undertaking initiated ing more than who would take power. to protect and enforce the will of whatever by the international community and Haitians. The train wreck that we saw unfolding government emerges from this process. Even before the earthquake, the task fac- had been in the making for some time. Over There is time to fix the situation. This ing those engaged in Haiti’s development was the summer, the government of Haitian summer, the Haitian parliament voted to immense. The country had been hit by a series President Rene Préval, despite entreaties allow President Préval to remain in office of major tropical storms in 2008 that destroyed from the candidates, the international com- until May 14 if a successor was not in place infrastructure and crops, left the third-largest munity, ambassadors in Port-au-Prince and by the official transfer-of-power date of Feb. city underwater and killed close to 1,000 people. the Haitian private sector, refused to even 7. Thus there is an eight-week window that Then came the earthquake. Infrastructure entertain the idea of making changes to the could allow for a thorough recount of votes, in Port-au-Prince that had largely been spared Provisional Electoral Commission (CEP) that for challenges to the results and for a more from the earlier storms now lay in ruins. Close is responsible for organizing and running legitimate second round of elections. to a quarter-million people were killed, includ- elections. With the CEP firmly under the rul- The UN can correct the more egregious of ing an estimated 20 per cent of Haiti’s civil ing party’s control, no one in the country or the first-round practices, notably by having servants and many United Nations staff. the international community was reassured its troops deliver ballots, camp out at the UN Photo Logan Abassi Although it is easy to be overwhelmed by that free and fair elections could take place. polling sites with those ballots, stand watch Clean and fair elections to form a legitimate what has not been done, progress has been Not that there was much choice. If elec- during voting and recording of results, and government are as important for the people made: over 40 per cent of reconstruction tions did not take place on time then an interim transport ballots to the counting centre. of Haiti as they are for the international com- money has been disbursed and another 30 government would have been required for the But again, more than technical fixes are munity. An inclusive and widely disseminated per cent has been allocated. Most important- period, likely longer than a year, between the required and there needs to be a clearer national debate, perhaps a form of États ly, the international community has managed expiration of the current government’s mandate understanding by the Haitian people of the généraux led by prominent former heads of to house, feed and provide sanitation and and the formation of a new government. This respective responsibilities of the internation- state, may be the only chance to forge the medical care at most of the camps, which are would have been a tremendous setback to the al community and the Haitian government consensus on priorities that can help get the now home to roughly a million people. process of restoring democracy and to effective Given the huge imbalance in funding and country back on track. It would give Haiti the However, relief and reconstruction are rebuilding. So the elections had to take place. technical capacity between donors and the direction it lacks, give donors the confidence only part of the solution for Haiti, and per- The international community did push Haitian state, decision making in Haiti is to continue and give the Haitian people some haps not even the most important. for more transparency and did try to provide and will remain a joint exercise between the sense that decision-makers actually are con- Research from the Inter-American Deve- security at voting stations. Clearly, more country’s government and the international cerned with their welfare. lopment Bank shows that after a decade, the resources were needed for both efforts. community. Having Haiti take the lead in But whatever comes from the current situ- economies of countries hit by a major natural The election-day fiasco not only turned into reconstruction and rebuilding is proving to ation, we—Haitians and the international com- disaster perform as well as similar national an embarrassment for all concerned, but it is be more of a longer-term aspiration than a munity—need to remember that this is going economies not affected by such disasters. testing international resolve to work with the short-term operational reality. to be a long-term process and one that will not Infrastructure—human and physical—is government; US Senator Patrick Leahy’s call for While the international community cannot be easy. Success is never assured but, should only one factor in economic growth and freezing of funds to Haiti was probably one of and should never tell the government what to we not remain committed, then failure is. good governance; what really makes a differ- the more restrained reactions in the US. do, it can and must explain what it will not pay Carlo Dade is executive director of the ence is the quality of institutions. And insti- The election also brings into stark focus for. A good but painful starting point in this dia- Canadian Foundation for the Americas (FOCAL). tution building is the main challenge in Haiti. the need for a public understanding of logue is the current debate about the elections. [email protected]

government and donors, in partnership with universities and NGOs operating in Haiti, can help nurture the skills of Haitian civil servants to better manage the needs of Haiti’s people. A country at a crossroads The recovery effort can no longer be slowed by custom delays at ports and bor- It’s been reported that 4,000 schools Haiti and the relief effort are at a cross- der crossings. International governments DAVID MORLEY were destroyed in the earthquake. The gov- roads. This is the moment where the Haitian should provide civil service training and ernment plans to rebuild 130 of them this government, international donors and NGOs technological support to the Haitian govern- year, but Save the Children will build almost must find better ways to work together if we ment to speed up processing. half as many again ourselves. are to help the Haitian people rebuild, if we ddy Pascal School was three stories To move displaced Haitians to perma- If the government is only able to build twice are to give them reason to continue to hope. tall. Located in a rented building in nent homes, and to build the number of as many schools as one aid agency, well, that The Government of Haiti must first find a one of Port-au-Prince’s struggling schools necessary to meet the needs of the helps explain why the free public-school sys- fair and credible resolution to the election. neighbourhoods, it provided educa- children, the Haitian government will have E tem only reaches 15 per cent of the school-age There is no question that reconstruction to address the land tenure/rights situation. tion to 400 children. The teachers were population. Another 35 per cent of Haitian chil- efforts, not to mention efforts to contain the motivated and innovative. Today there are empty properties that dren attend private schools. Fewer than half cholera outbreak, are being hampered by the When the earthquake hit on Jan. 12, 2010, would be perfect for purchase by eminent- the children in the country reach Grade 6. ongoing political instability and civil unrest. the school collapsed. The three floors pancaked domain. These lands could be developed As co-lead of the UN Education Cluster, Save Once the election is resolved, co-ordinat- and the school was rubble. Fortunately no one into thriving communities for Haitians who the Children will continue our pre-earthquake ed leadership from the government of Haiti was in the building at the time. “But,” Eddy told were renters before the earthquake and work in teacher training, developing the human backed by lead donor countries like Canada me, “four of our students died in their homes.” who have been reduced to squatters today. capital which is so vital if Haiti’s children are to is vital if we are to succeed in our efforts to Save the Children has been in Haiti for over Finally, all improvements must be sus- have a chance. Post earthquake, we also have to speed up development. Once a new Haitian 30 years working with the government and tainable. Longer-term, substantial and sus- work to build and rehabilitate schools—children government is in place, Prime Minister community organizations like the Eddy Pascal tained investments are especially needed to cannot meet their full potential if they have to Harper should invite it, donor countries and School to improve the well-being of children strengthen the education sector and enable learn in muddy tents and under shredded tarps. NGOs to again meet in Montreal to plan the through health-care and education programs. It the Ministry of Education to assume the lead- But the building of schools has been next steps toward long-term recovery. was never an easy country to work in. ership and oversight role required to achieve slowed by some of the same problems that International donors pledged $5.75 bil- Before January 2010, Haiti was the poor- the goal of universal access to education. have left hundreds of thousands of people lion for Haiti, but as of November, only est country in the Western hemisphere, with Putting more efforts into education now in tent cities: land rights. 42 per cent had been disbursed. These the highest infant, child and maternal mor- will pay enormous dividends for Haiti in the “We know the tents aren’t the best thing promises must be kept. Donors must also tality of Latin America and the Caribbean. future, because more educated Haitians will for the classrooms, but rebuilding a school deliver the $174 million in pledges made in Haiti had more than 225,000 children in be able to tackle the hard problems which right away isn’t easy either,” said Amber, our response to the World Health Organizations forced domestic service. will face this country in the years to come program manager for Port-au-Prince. “We don’t cholera appeal. Decades of dictatorship followed by as they build Haiti back better. want to build on land that has no clear title; if Donors must stress accountability in years of political instability had left the David Morley is executive director of Save we do and another owner is recognized, they the use of aid resources and ensure that aid government weak and NGOs both large and the Children Canada. He recently returned could claim the land and the building and turn strengthens the institutions governing Haiti’s small were forced to fill the void left by from a trip to Haiti. it into a restaurant or shop.” recovery and development. The Haitian inadequate public services. [email protected] EMBASSY, Wednesday, January 12, 2011—9 Haiti: One Year Later ‘Canada is trying to be very careful’ Continued from Page 1 But while experts credit the Canadian government for its quick relief response, a year after the disaster struck there is a sense of disappointment in some corners that the rebuilding of Haiti has not taken on the promi- nence in Canadian policy that many were expecting. In fact, even the efforts Canada has made appear to be wreathed in confusion, with more questions than answers. The problem, experts say, is that the initial international optimism to build a new Haiti has been overtaken by the realities of political and social instability in a weak state, which make international donor co-ordination dif- ficult and aid disbursement challenging. DND and UN Photos Government or not? The presidential palace in Port-au-Prince collapsed after the Jan. 12, 2010. Only two weeks after the earthquake, the Canadian government hosted a confer- ian relief efforts were expected to transition “stumbling block” in the form of a weak Haitian “It’s easy to say ‘We’ve built so many ence in Montreal on Jan. 25 that saw foreign to more long-term development, said Tim government has made it difficult for donors to schools and we trained so many police offi- ministers from more than a dozen countries Donais, professor in the department of global find “legitimate partners” on the ground. cers,’” he said. “But to me the heart of the come together with representatives of other studies as Wilfrid Laurier University, who spe- The earthquake, and the increased for- problem in the case of Haiti is how do you cre- international bodies, including development cializes in post-conflict peacebuilding. eign presence in Haiti, only aggravated this ate a government responsible and account- banks and NGOs, in an effort to shape the “At the beginning, there was certainly dynamic, he added. able to serving the citizenry that elected it.” roadmap for Haiti’s reconstruction. an honest and straightforward desire for “It is very important that donors like According to a spokesperson at the Canada to take on Haiti as a key development Canada reinvest in the Haitian state to What can Canada do more? Canadian International Development Agency, partner,” he said. “There was a lot of opti- reclaim its ground as leader of all reconstruc- Although Canada has focused many of its the Canadian government has provided mism. But that optimism might have contrib- tion initiatives,” Mr. Baranyi said. projects on security and judicial reform, which $150.15 million in humanitarian assistance uted to overlooking some of the fundamental A report released by Oxfam on Jan. 6, are important tasks, Mr. Baranyi said Canada to Haiti, which includes money to Canadian political issues that didn’t go away because tracing the reconstruction efforts of the could balance its portfolio by focusing more NGOs and UN humanitarian organizations, of the earthquake.” Haitian state, international donors and non- on economic and social issues. In the context including the World Food Program. Haiti is the poorest country in the Americas governmental groups over the last year, of the current Haitian elections, the Canadian At the International Donors’ Conference at and has been marred by political violence makes a very similar point. government should use its diplomatic clout to the UN on March 31, Canada also announced throughout its history, having experienced “The international community has not encourage coalition-building among political $400 million to support the Action Plan many political coups. The country’s govern- done enough to support good governance and forces while also strengthening citizens’ demo- for National Recovery and Development ment is seen as weak and unstable, with effective leadership in Haiti,” the report reads. cratic participation in policy processes. and Haiti, a reconstruction roadmap put high corruption and crime rates. Canada’s “Many aid agencies continue to bypass local Canada should also give more aid to together by the Haitian government. Adding engagement in Haiti goes back years before and national authorities in the delivery of assis- agricultural projects, as this is an important everything up with the $550 million already the earthquake hit, as this country’s foreign tance, while donors are not coordinating their sector that can create jobs in the rural areas pledged from 2006 to 2011 for Canada’s larg- policy focus on the Americas have made the actions or adequately consulting the Haitian and address the issue of food security in the est aid recipient in the Americas, the govern- Caribbean nation a priority. people and key government ministries when poor country, Mr. Baranyi added. ment’s total contribution to Haiti surpasses Taking on an even greater commitment taking decisions that will affect Haiti’s future.” Ms. Shamsie agreed, adding that the $1 billion over this five-year period. towards the rebuilding of Haiti after the The international community believes Canadian government should consider The federal government also sent about earthquake appeared to be a natural transi- things must be done in a certain way, said Ms. changing its position towards free trade 2,000 Canadian Forces personnel to Haiti in tion to a new signature Canadian foreign Gissel-Ménos, but those visions are not easily agreements by allowing the Haitian govern- the first months after the earthquake, includ- policy for this government, especially as the compatible with Haiti’s complex realities. ment “to put tariffs on certain products if it ing military medical staff. It also fast-tracked Afghanistan mission draws to an end, Mr. “There are priorities that the interna- feels the need, in order to ensure the country the process of adoption of hundreds of chil- Donais said. tional community thinks should exist,” she can feed its people.” dren from Haiti. “Canada’s commitments, on paper, have said. “Now, the government living the reali- On Jan. 11, CIDA Minister Bev Oda But the actual disbursement of funds been that of a leading donor,” he said. “But ties of things on site, I think may know bet- announced Canada’s aid agency would be has been slow, said Stephen Baranyi, pro- given the challenges and the obstacles, there ter what those priorities really are. I think funding a number of agricultural projects fessor at the University of Ottawa’s School might have been some rethink over how in that sense, sitting down, communicating that would tackle food security and provide of International Development and Global much Canada wants to be seen as having and explaining to each other and getting all financial credit to agricultural enterprises. Studies. tied itself to long-term development of Haiti.” the expertise, international and local, to me Canada could also push for higher inter- “Canada has been quick on pledges, but The political violence resulting from the that’s the only way to success.” national co-ordination at the highest political it’s more difficult to move money out of first round of disputed presidential elections The problem is that Canada’s overall level and “allow itself to be led rather than Ottawa,” he said. in November hasn’t done the country any approach towards Haiti—and that of all being a leader,” Mr. Donais said, if there is a Haitian Chargé d’Affaires Nathalie Gissel- favours. The second round of elections has other major donors—has been flawed from coherent development strategy in place that Ménos also said there has been confusion not yet been scheduled, but there are already the beginning, and has become even more highlights the Haitian government’s priorities. over how much of the pledged international grumbles from some donors questioning the pronounced after the earthquake, said “If this is going to be successful it has to money has been delivered. This confusion, wisdom of working with the Haitian govern- Yasmine Shamsie, professor at Wilfrid Laurier be not about what Canada can get out of it in she said, does not only come from Canada, ment, or going through other channels. It University, whose research is focused on terms of domestic credibility and internation- but from the entire international community. appears Canada has made its decision. peacebuilding efforts in Haiti. al reputation, but the difference it can make in She said she is not sure how much money “I have the feeling that Canada has taken Canada views Haiti as a fragile state, she the lives of Haitian, and that requires a differ- Canada allocated from the total it pledged, a step back and is trying to be very careful said, but while there are deadlocks at times ent approach, a more altruistic one,” he said. but at the international level the ratio is at where they are stepping and really managing among political elites, where political power The need for international co-ordination about 20 per cent. their contribution very cautiously, by going means economic power, the concept of the has also been recognized by non-governmen- “When you hear that much help promised, through bilateral and multilateral ways and country being a fragile state is problematic tal groups on the ground. your hopes are raised, and the hopes are working with the biggest NGOs,” said Ms. because there is no civil war or insurgency Groups like the Canadian Red Cross, very high,” she said. Then when the promises Gissel-Ménos. “It’s what I see, what I hear, in the small Caribbean country. which so far has received a total of $54.2 aren’t met, she said, people’s hopes are “sud- what I read. It’s my deduction.” Another issue added to the development million from CIDA, are still focused on pro- denly brought down to almost nothing.” There are pros and cons to this, experts dynamic is that “three quarters of what we viding relief to Haitians even a year after the In addition, the Canadian Press report- say. Providing clean water and emergency do in Haiti is about justifying our aid dollars earthquake due to the high scale of devasta- ed on Jan. 11 that the Canadian govern- shelter can be achieved through non-govern- to Canadian tax payers,” she said. tion, said Pam Aung Thin, the organization’s ment turned down a plea to extend its mental organizations without having to rely “The government feels it is accountable spokesperson. military relief effort in Haiti beyond the end on the infrastructure of the country itself, Mr. to Canadians, while at the same time saying But Ms. Aung Thin also emphasized the of Canada’s official relief mandate. In an Donais said, but governance becomes impor- it is accountable to the Haitian government,” need to have a long-term development strat- interview, the UN’s head of humanitarian aid tant once institutional changes are needed. she said. “It is a dynamic that drives all egy for Haiti. in Haiti, Nigel Fisher, said there was a “strong Since the Haitian government has a reputa- donor aid in Haiti unfortunately, including “We know as an organization that we will request” to keep Canadian military engineers tion of being inefficient and corrupt, donors tend Canada’s.” be there for at least 10 years in the rebuild- in the country because they had been effec- to channel money through external groups, but This is what has made international ing stage,” she said. The Red Cross works tive in clearing rubble and reopen roads. this bypassing does not generate any capacity development co-ordination so difficult in within its own system to ensure internal co- Still, the military packed up after two months for the government, Mr. Donais said, and puts Haiti, Mr. Donais said. Since international ordination among its different branches, “but and returned to Canada. all the development efforts at a long-term risk. donors have to return with concrete results that has to be co-rdinated with governments Things appear to have bogged down International donors have been taking this to the domestic public, many of them “fly the and other NGOs to avoid overlap.” around the six-month mark, when humanitar- path for years, Mr. Baranyi said, since this flag” around their own projects. [email protected] EMBASSY, Wednesday, January 12, 2011—10 Opinion Jason Kenney vs. the Catholic bishops Because it is ruled by partisan advan- tage it is always predictable. No chance of new and better ideas emerge in this kind of discourse. And, for that reason, it is extremely boring. No wonder Canadians in increasingly JIM CRESKEY large numbers don’t want to follow federal political debates that are only about win- ning and not about substance. In the US, Republican political campaign ou wonder today why all these gurus Lee Atwater and Karl Rove were cred- people are up shouting at one ited with turning this kind of political ambi- another in Question Period,” the tion into a dark art. From Ronald Reagan to Photo: Sam Garcia late Canadian political journalist George W. Bush, they taught their clients

‘Y Embassy Marjorie Nichols wrote 17 years ago. “Well, that only winning mattered. Good and use- it’s because they are uncivil people, they ful debate fell by the wayside Immigration Minister Jason Kenney has launched a war of words with Catholic bishops across are untutored. It’s like inviting people who In Canada, the hallmarks of that kind of Canada over the government’s anti-human smuggling bill, C-49. eat with their fingers to a banquet.” political transformation are turning up with A bit of hyperbole that Nichols used to alarming frequency, often when least expect- to have their rights recognized,” the letter ideological bureaucrats who work for the describe federal politics during the Mulroney ed. Like the dying days of 2010, in an arena read. “They also foster hostility towards bishops’ conference producing political let- years. Truth is, there were (and still are) as unlikely as Canada’s Catholic press. refugees and fuel xenophobia in general.” ters signed by pastors who may not have many “tutored and civil” MPs and ministers, The country’s Roman Catholic bishops The letter was also signed by leaders of specialized knowledge in certain areas of and I’m sure most if not all of them use their had been looking at the government’s new the United Church, the Anglican Church, policy,” Mr. Kenney told Deborah Gyapong knives, forks or chop sticks. human smuggling bill, C-49. The bishops’ the Christian Reformed Church in North of the Canadian Catholic News service. But were Nichols alive today, she might discovered that the bill aims to build deten- America, the Evangelical Lutheran Church Instead of taking a hard public look at a find the shouting and incivility of the 1980s tion centres to house certain refugee claim- and the Council of the Muslim Community. bill widely seen as flawed, Kenny leapt into Ottawa paling in comparison to the increas- ants as well as withhold family reunification- It simply asked that Harper meet with these argumentum ad holmium—arguments about ingly septic political discourse of the Harper ation and other basic rights. religious leaders before he consider the the person instead of the idea. Something my government’s Parliament. Rightfully, and perhaps in part because drastic changes to the refugee system called old Jesuit logic teacher taught me never to do. Today, political discourse is frequently no Christianity is a religion founded on a refu- for in Bill C-49. Kenney must have missed that class. longer a discourse at all but expressions in word gee family—Jesus, Mary and Joseph—the Kenney might have responded to the But it’s not too late to catch up. The and deed of raw ambition for partisan power. bishops publicly objected to the govern- bishops’ criticism the way Catholics the immigration minister and the PM have a Everyone knows what raw ambition looks ment bill. The bishops sent an open let- world over have done on matters of con- great deal to learn about how Canada’s like. Its ugly traits surface not just in politics ter to Prime Minister Stephen Harper and science for centuries: argued heatedly and refugee system works in practice—if only but everywhere, regardless of rank or class. It Immigration Minister Jason Kenney, who in passionate detail. they will step out of their partisan cocoon. cares little for the facts. It discredits the per- also happens to be a Catholic. But Kenney would have none of it. Instead, A good place to begin might be a meeting son on the other side of an argument instead ““References by representatives of your he just shot down the bishops for being too with Canada’s religious leaders, followed by of addressing the substance of the issue. It government to ‘bogus’ refugee claimants dumb to know what they were talking about, a consultation with the many church groups turns its back on the unknown truths that can undermine Canada’s obligations to refugee and that they were being manipulated by who volunteer their time and money work- sometimes be discovered in honest dialogue. protection and question the credibility of their non-clerical staff. ing with refugees. And it never, never backs down. refugees fleeing persecution and seeking The letter reflects a “long tradition of [email protected] Investing in Africa: Pain or promise? its future. Here is a powerful democracy and a may see African land as a future breadbasket ment projects are not enough in themselves JOHN SCHRAM liberal, free and growing economy and society. for growing food exports. But to most people to mollify communities that believe they are But South Africa is not Africa. Nor is it in African countries, land is almost as conten- being left out of the larger benefits chain. the continent’s only serious business pos- tious as oil and minerals. Everyone now knows With these suggestions in mind, Canadian anadians might be forgiven this week sibility. Ghana, though much smaller, is, if the potential for conflict over land from the businesses should know that the world must for laughing at the idea of investing anything growing faster. It too has an attrac- Zimbabwe “land grab” of white-owned farms. turn to Africa. Africa’s vast potential will only in Africa. Africa is often known in tive governance and business climate. The environment is another potential be realized through focusing on private sec- Canada for its risks, not its potential, Tanzania is also a good bet for Canadians. trap. Where a Canadian sees a potentially tor wealth creation, and here, foreign invest- C It’s just returned their elected president lucrative mine or timber project, an African ment and participation will be key. and Canadian businesses are unlikely to be reassured by fulsome media reports of two to office in a free and fair election, and its understandably will see possible ecological The new African leaders know this. So would-be-presidents competing for power in growth rates are impressive. Botswana is a devastation. The environment is a cause do their business communities, their banks, the Ivory Coast, or by sceptical commenta- winner on all fronts: good government, good that can be championed not only by justly and their trade, mining and finance minis- tors predicting chaos after this week’s inde- economic policies, top growth. aggrieved local communities, but also for tries. And so do the Chinese and Indians. pendence referendum in southern Sudan. Canadians should also be looking serious- wider purposes by local and global NGOs. If investing in Africa is good for Chinese Both stories imply the very real pros- ly at opportunities in Angola, a country that Happily, there are ways to ensure that business—and it evidently is—how can it not pect of conflict, and both could bring more has all the attributes of a major economic Canadian investors and business ventures be good for Canada? If it’s possible for China, is demands on countries like Canada—not power, as well as Mozambique, and Namibia, avoid these pitfalls. it not possible for Canada? Can we really afford for investment, but for costly international a quiet, sound, well-governed country First and foremost, investors should to cede our traditional lead in mining, telecom- peace keeping and nation building. blessed with diamonds and uranium. always work with and through strong local munications, information technology, engineer- But if you are among those tempted to laugh Other potential growth economies? Mali, partners that have at least as much at stake— ing, forestry equipment, rail technology, elec- off Africa as an investment target, you may want Cape Verde, Ethiopia, Rwanda, Uganda and and as much to gain—as the foreign investors. tricity, to more competitive Chinese rivals? to think again. Look at what the Economist said Zambia. For the truly intrepid, aware and And investors should listen to these Surely not. Canada still has an aston- in its Oct. 2 edition: “Africa is now near the top committed, real opportunities lie in Nigeria, partners. It is essential to understand local ishing, unique, yet very real asset in most of the agenda for the world’s leading businesses. amid the bombastic dynamism of Africa’s sec- perceptions, to appreciate the sense of local African countries: our remarkable credibil- The continent still has its problems, but it is ond-largest economy and biggest population. ownership, sensitivities and national pride, ity. We have invested heavily in people, aid no longer ‘hopeless’ as this newspaper once But let’s not get too rosy. Business peo- and to grasp how local business and gov- and resources over the past 50 years. With described it—especially for anyone wanting to ple need to be realistic, to face the African ernment is done—by whom, with whom and a bit of care, thought, planning, good com- be part of a fast-growing consumer market. Last continent as it is. While risk management with what motivation. munications and sound local partners, we year, while the global economy struggled with is important in all projects, it is especially Open and transparent dealing is also could be cashing in on this investment now. the aftermath of the financial crisis, Africa as a so in Africa, where the range of potential essential for successful projects. In an age Many good African countries are open for whole continued to advance and is expected to issues is wide and often unpredictable. where everyone has a mobile phone, where business. Canadians should be there. grow by 4.3 per cent this year.” To an outsider, the pitfalls can be subtle FM radio stations air call-in talk shows John Schram has served as Canada’s The Economist followed up in its new but devastating. What to a Canadian entre- throughout the day, where social network- ambassador to Zimbabwe, Angola, Ethiopia, annual publication “The World in 2011” with preneur seems a recipe for economic suc- ing is gaining remarkable traction, rumours Eritrea and Sudan, and high commissioner to a whole page telling us about what it calls cess may be perceived by a Ghanaian or of perceived double dealing get around Ghana and Sierra Leone. He is now a distin- the “boom times” south of the Sahara. Nigerian or Ethiopian as little more than quickly. They become political issues that guished senior fellow at Carleton University’s For Canadian companies, this is a future barely disguised exploitation—an outsider’s governments must respond to. Norman Paterson School of International worth investing in. theft of the national heritage. Investment ventures that are socially Affairs and a senior fellow at Queen’s Look first at South Africa. Here is the engine A Canadian—or, as is now happening on a responsible are more likely to be accepted, University’s Centre for International Relations. of the continent, the place where Wal-Mart sees large scale, Saudi Arabian or Chinese—investor though even very good community develop- [email protected] Canada’s Strategic ResourcesPOLICY BRIEFING

CONTENTCONTENTCONCONTCONCONTENTCONTECOONTEONTENT When politics, natural Weighing ‘net benefit’ resources collide in a globalized world Page 12 Page 13

Liberals: Championing for a A new era for commodity national resource strategy markets Page 13 Page 17

NDP: Fair, accountable The future of critical foreign investment minerals Page 15 Page 16

Water: ‘The’ key resource Tapping Arctic wealth Page 16 Page 18 EMBASSY, Wednesday, January 12, 2011—12 Canada’s Strategic Resources Policy Briefing When politics, natural resources collide

Carl Meyer approach toward foreign ownership, or you have to restrict foreign ownership,” he said. The gap between how the government or months last year, Saskatchewan has approached the issue of foreign owner- Premier Brad Wall was on the front ship over the years, including in the Potash of newspapers across the country, Corp. decision, and whether something has F leading the effort to scuttle a deal that been considered strategic, is rather wide. would have seen his province’s giant potash In terms of mining, Xstrata took over company taken over by an Australian firm. Falconbridge and Vale took over Inco in 2006, Eventually, the federal government came US Steel took over Stelco in 2007, and Rio down against the deal, saying it did not meet Tinto took over Alcan that same year. the “net benefit” test laid out in the Investment Technically, only Investment Canada knows Canada Act. It was only the second foreign take- if these foreign companies are fulfilling the obli- over attempt rejected in the act’s 25-year history. gations that they made when they launched the In an end-of-the-year interview with the takeover bid. But media reports over the years CBC on Dec. 22, the vindicated Mr. Wall was have suggested less than ideal situations. asked about the legacy the decision would “They have not always turned out to be leave behind. what I would call net benefits for Canadians, “What is lasting is the issue itself,” Mr. Wall or for the local economies,” said Ms. Mohr. said. “The personalities that were involved, Many feel the federal government’s decision myself included, that’s more fleeting and on Potash Corp. was a one-off rejection taken more temporary. as a result of its specific circumstances. Potash “I think we’re going to have a discussion in Corp. is unique in that it controls a large percent the country about what is a strategic resource.” of global potash production, produces huge It’s not a new term. But during the potash royalties for the provincial government, and is debate, it took on a newfound importance. Mr. embedded in the Western transportation sector. Wall and others opposed to the potash take- It was also unique because, once Mr. Wall over felt fertilizer, which will take on growing made clear his opinion, the fate of several importance as the world’s population prompts Conservative federal ridings in Saskatchewan

the need for more food, is a strategic resource. became came into play. Indeed, in the wake Photos: Jake Wright The Hill Times Immediately after the federal government of the decision, some commentators accused Agriculture Minister Gerry Ritz said potash was strategic, but Industry Minister Tony Clement rejected the potash takeover, Agriculture the government of using the “strategic” label downplayed his statement, pointing out that the term did not appear in the Investment Canada Act. Minister Gerry Ritz said the Harper government to deliberately muddy the waters in order to was blocking the sale for “strategic” reasons. obfuscate its real domestic political concerns. trolling a vast majority of the oil sands. There The Nature Conservancy of Canada says But Industry Minister Tony Clement, perhaps “I think what happened was that the lob- is no oil sands version of Potash Corp. the country has the third largest renewable sensing the backlash that would result from both byists and the influencers had Harper himself One of the largest single oil sands entities, freshwater supplies after Brazil and Russia, foreign investors and Canadians who favour lined up to condone this deal, and then this Suncor, with its partnership with France’s and roughly nine per cent of the country more protectionist practices, later downplayed back-swell outcry [occurred] and somebody Total and its recent merger with Petro is covered by freshwater. The Great Lakes, that statement, saying there was nothing in the started counting seats,” said Mr. Budden. Canada, could be considered a target that shared with the United States, is the world’s federal investment law that discussed strategy. might be protected by a federal government, largest lake system of freshwater. In the aftermath, the government said it What could be strategic? said Ms. Mohr, but it remains to be seen what The scarcity of water is often talked about. would conduct a review of the law to bring Even with all those stipulations and a the outcome of that would be. Right now, a gallon of water costs next to noth- clarity to the issue of strategic resources— wholly unclear definition, it is still possible to Another item at the top of people’s lists ing, but that could change if freshwater becomes clarity that many foreign and domestic inves- imagine what the government could consider is uranium. Canada was the world’s largest scarce or expensive to obtain in Canada, as it tors are waiting for. more or less strategic if it was pressed to do producer of uranium until a push in early currently is in other countries such as Sudan. But this has yet to happen, perhaps due so. At the top of many lists is petroleum. 2008 by Kazakhstan to increase its output And the direct strategic nature is undeni- to the monumental nature of the task: defin- Canada has the world’s second-largest proven knocked Canada to second place. Canada able: Environment Canada says roughly 30 per ing exactly what a “strategic resource” is in reserves of oil, is the sixth largest producer and still has the world’s largest uranium mine, cent of the world’s population lack access to Canada is difficult. the 14th largest net exporter in the world, accord- owned by Cameco, in Saskatchewan. adequate sanitation, largely because of unsafe Economists say there is no clear-cut, theoreti- ing to the US Energy Information Administration. Uranium can easily be construed to have water. One billion people cannot access drink- cal definition of what a strategic resource is. The Every province and territory except highly strategic value both for civilian and ing water that is safe. Less than half of the entire element of strategy inherent in the term is depen- Nunavut is an oil producer, but none more so military purposes. Enriching it can produce population of Africa has piped freshwater lead- dent upon external phenomena like political or than Alberta, which is home to the oil sands, fuel for nuclear reactors, while enriching it ing to their homes and only a fifth have sewers. policy decisions, world markets, environmental something Natural Resources Canada calls “a further creates weapons-grade material for But it is difficult to gauge how the Canadian circumstances and the like, and economists need strategic resource for Canada, North America use in nuclear bombs. As well, the Council on water industry would be protected from a for- to know these factors prior to their calculations. and the world.” In addition, equipment and Foreign Relations estimates that there is only eign takeover, largely because there is no real This bears itself out in practice: A quick personnel are drawn from across Canada, about 5 million recoverable tons of uranium, single water industry, as it is split up between search across federal government websites flowing oil money around the country. and about 10 per cent of that is buried within wastewater, water purification, water trans- reveals the term “strategic resource” to be The oil sands and the insatiable American Canadian soil. portation and other businesses. applied to everything from oil to informa- appetite for petroleum has made oil Canada’s Even further, the CFR pointed to a German There are other resources that could be con- tion, health, water, hydroelectricity and even number one export. The industry is also a study that showed that only Canada’s reserves sidered strategic. Much of the world is moving certain government committees. In other magnet for investment: The Parliamentary have significant amounts of usable, high-grade towards natural gas as a cleaner fossil fuel pro- words, anything can turn out to be strategic, Natural Resources committee says up to uranium, compared with Kazakhstan’s, which is viding a bridge toward more alternative energies. so long as the right conditions abound. $125 billion dollars is expected to be invest- on average far less potent. Canada has an emerging unconventional gas “It depends very much on what the [for- ed in the oil sands through 2015. Currently, federal law prohibits foreign industry in the form of shale gas, but that is most- eign] bid concerns, who the parties are to And it is a major cash cow for the country. control of uranium mines, and there are ly undeveloped at this point. It could explode if the transaction,” said Scotiabank commodi- The committee cited Canadian Energy Research strict export control limits to countries that the price of natural gas rises considerably and ties expert Patricia Mohr. Institute statistics showing how bitumen and are not part of nuclear treaties, so protect- the industry sinks more money into develop- Her views were echoed by others, such synthetic crude oil produced through 2020, as ing the industry from a foreign takeover is ment. There are also roadblocks over developing as investment strategist John Budden, who well as spin-off benefits across the country, could already happening to a certain extent. regulations throughout the provinces. said he considered resources to be strategic contribute $789 billion to Canada’s GDP. About After the Potash Corp. decision, many There are other metals worth considering: if they are required by Canadians. This would half of the world’s crude oil reserves is avail- in Saskatchewan turned to uranium as the copper, although it is produced in roughly 50 include fuel for heating and transportation, able for private sector investment in Canada, as province’s next industry slated for protec- countries, is widespread in Canada; gold, potash for the country’s farms, water for irri- compared to many other jurisdictions which are tion. But Mr. Stewart said foreign investment although Canada is losing ground to newer gation, and other such items. more state-owned or state-controlled. was not a concern to his members. producers, is still prevalent, and others. Another possible definition is a resource “Absolutely, oil and gas is a strategic Some of them, however, are calling on the But keep in mind the imprecise definition. that can make a “major difference” to Canada. resource for Canada, in part simply because government to establish a regulatory regime As this story went to print, Luxembourg John Stewart, director of policy and research of the magnitude of the resource,” said that secures reciprocal investment rights in the company ArcelorMittal was competing at the Canadian Nuclear Association, said if Dave Collyer, president of the Canadian case of foreign investment in uranium mines. fiercely with Nunavut Iron Ore for Baffinland that was the definition, then he would consider Association of Petroleum Producers. He said In other words, foreign investors would be Iron Mines, an open pit iron supply. Many uranium to be just such a resource. it was important for the country to remain permitted to buy Canadian uranium assets only are already trotting out the term “strategic But he cautioned that he “would be wary of competitive and attract investment. if Canadian companies could buy assets in the resource” to refer to the mine’s location and calling it a strategic resource if a certain policy But how would the government protect the country where that investment originates. its importance to the local economy. direction necessarily then comes with that.” oil industry if it considered it strategic? A third resource on analysts’ lists is So, perhaps add iron to the list. Suffice “I think something can be a strategic resource There have been many significant foreign water. Water is needed to sustain life, power it to say that there is still a long way to go in the sense I mentioned, which is making a takeovers and investments in the oil sands, but industry—including the oil sands, in huge before Canadians truly understand what it is difference to Canada—and that doesn’t neces- that might be the problem: They are diversified quantities, as well as hydroelectricity—and in their country that is strategic. sarily imply that you have to take a certain and plentiful; with no one single company con- provide irrigation in agriculture. [email protected] EMBASSY, Wednesday, January 12, 2011—13 Canada’s Strategic Resources Policy Briefing Championing a national resource strategy

Australia’s BHP Billiton, the world’s largest DENIS CODERRE mining company. The Liberals under Leader Michael Ignatieff opposed the takeover because it would have he burdens of the country will be great, put virtually the entire potash industry in the but compared with our resources, if hands of a single foreign interest, which was properly developed, they will not eventu- troublesome because Canada accounts for Tally be serious. The country’s resources a major proportion of the world market and are enormous and they must be conserved as far an even larger share of the world’s reserves. as possible for the benefit of the whole people. (Canada and Saskatchewan control 53 per cent In order to conserve it is not necessary or of the world’s known supply.) desirable that resources should lie idle; but Rising global demand for food and the fer- they must be developed in the interest of the tilizer needed to boost production has made people and not exploited for individual profit, Potash Corp. a hot commodity for interna- for it must always be borne in mind that tional suitors. adherence to such a policy will increase that As Liberals, we welcome and encourage equality of opportunity which should be the foreign investment, but we oppose the fire sure purpose of every true democracy. Government of Saskatchewan Photo sale of key national assets under the cloak Saskatchewan Premier Brad Wall captured headlines across the country when he declared potash —Prime minister Robert Borden, Sept. 9, 1918 of secrecy. That’s why we will continue to a “strategic resource.” Liberal Natural Resources critic Denis Coderre says a national strategy to call for improvements to the Investment protect those resources from outright foreign control is needed. When the world looks at Canada, it sees Canada Act to ensure there is a net benefit a superstore of natural riches, its shelves achieved by the sale of strategic assets. stocked with minerals, water, energy, wood, The Liberal Party did not see a net ben- ■ Consultation—Formalizing a require- of Canada’s economic strategy in the global food and a shopping cart of other treasures. efit to the Potash Corp. bid when factoring ment to consult provincial or territorial economy. If you ask someone outside our borders in jobs, investment, provincial revenues and governments where the head office of the We would ensure research and develop- to name the first thing that comes to mind Canadian global leadership. Canadian company is located. ment is focused on innovation and new when they think of Canada, some would point The numbers speak for themselves Much of Canada’s economic success technologies such as biomass energy from to majestic, snow-topped mountains or vast months after the takeover bid was rejected. today can be attributed to sound Liberal forest waste or state-of-the-art extraction prairies. Others would mention pristine water- Potash Corp’s stock recently hovered around economic policies put in place under Jean techniques that are environmentally sound. ways or forests as far as the eye can see. $170 a share—almost $40 more a share than Chrétien and Paul Martin. We can’t sit idle, in the way that the As the Liberal natural resources critic, I what BHP Billiton was offering in its $39-bil- Balanced budgets, tax cuts, investments Conservatives seem content to do, on our see the same things. But when I look beyond lion takeover attempt. in natural resources and research and devel- economic future. We need to move forward the postcard beauty of this great and diverse We need to be prudent when assessing opment are directly responsible for helping on developing trade opportunities with the country, I also see a country blessed with an potential foreign takeovers of our institutions Canada weather the economic storm that emerging economies of China and India and abundance of natural wealth. and industries. A Liberal government would tore through many world economies. other nations. What I don’t see is a national strategy to strengthen the Investment Canada Act in A full recovery is on the horizon, but More needs to be done to woo foreign protect those resources from outright for- three key areas to protect our interests: more needs to be done to get the Canadian investment, increase our exports and devel- eign control. Nor do I see a plan to develop ■ Transparency, including a stron- economic engine running at full speed. op partnerships to create Canadian champi- our strategic resources to create jobs at ger definition of how net benefit will be Canada is home to 75 per cent of the ons on the international stage. home as part of a long-term economic plan assessed, public disclosure of the rationale world’s exploration and mining compa- Leadership is required to guide Canada for generations to come. for each approval, and rejection of take- nies largely because previous Liberal into the future. I believe the Liberals have The Conservatives under Stephen Harper overs reviewed under the Act, including any governments introduced and extended the vision, the policies and the ideas to do brought the issue to the fore last year when conditions imposed on foreign investors. flow-through shares tax credits and mining just that. the government finally caved to public and ■ Enforceability—Options must be iden- exploration tax benefits. Denis Coderre is the Liberal Party critic political pressure and stopped the hostile tified for ensuring the enforceability of con- For Liberals, clean energy, mining, forest- for natural resources. takeover of Potash Corp. of Saskatchewan by ditions attached to investment approvals. ry and agriculture must be the cornerstones [email protected] Weighing ‘net benefit’ in a globalized world and exports. The exact thresholds and meth- The rest were major investors and traders made major capital and operating invest- PETER W.B. PHILLIPS ods for assessing these are not disclosed. abroad, earning in most cases a majority of ments abroad. AECL has 12 of its 34 reactors Since the ICA was passed in 1985, more their income in foreign markets. abroad, Potash Corp. has major investments than 17,900 takeovers have been assessed. in phosphate and nitrogen production anada’s foreign investment rules Before the BHP Billiton decision, only one What is Canadian? globally, CN Rail generated only 24 per cent have come under renewed scru- other takeover was rejected. In 2008, the In a globalized world, it is difficult to of its revenues from in-Canada shipping (19 tiny following Canada’s decision to government blocked US Alliant Techsystems define a Canadian company. Potash Corp. per cent is generated solely within the US Creject BHP Billiton’s $39-billion take- from acquiring MacDonald Dettwiler, argu- illustrates this well. While the company and the rest involves transboundary trade) over bid for Potash Corp. ing the deal affected national security. started as a Saskatchewan Crown corpora- and most of the resource and manufacturing The problem is that we may never know Neither decision offers much light on how tion in the 1970s and was privatized in the firms have key plants and markets abroad. why the federal government rejected the to judge net benefit. 1980s, it has since globalized. There are significant benefits from this bid—some say it did not offer a net bene- In December, Gandalf Group’s 21st quar- In 2010, more than half its publicly-traded interconnectedness. Canada has historically fit to Canada while others assert it was a terly C-Survey revealed that 60 per cent of shares were owned by non-residents (some used foreign capital to exploit resources and last-minute, calculated political decision senior executives in Canada supported the assert the share price is set on the NYSE), the to gain access to global markets, to highly to shore up marginal Conservative seats in BHP Billiton decision and 80 per cent agreed majority of its executive officers (most not skilled management and to technology. Saskatchewan. with the net-benefits test. Canadian) live and work abroad, most recent A recent study also showed that foreign- It is vital for both our industry and our What they mean by that is less clear. investments were outside Canada and virtu- controlled plants accounted for most of the relationships with other countries to be trans- Presented with 11 iconic Canadian compan- ally all of its revenue came from foreign mar- labour growth and productivity gains in parent about how we make such decisions. ies as takeover targets, they offered interest- kets. In short, it is hard to distinguish it from Canadian manufacturing during the 1980s While it is easy to say we need clear ing views. More than half believed Atomic BHP Billiton, the suitor company. and 1990s and, perhaps surprisingly, foreign rules, there are no simple answers. The Energy of Canada Ltd., Potash Corp. and CN Canadian firms and industry are both firms were three times more likely to oper- Investment Canada Act mandates that Rail (all with a history of Crown ownership) major sources of, and a destination for, for- ate a head office in Canada and had approxi- foreign takeovers in excess of $295 million had a high strategic value while a strong eign investment. We tend to bemoan the so- mately 25 per cent more head office work- by a company from a WTO member state minority of respondents (from 25 per cent called “hollowing out” of Canadian owner- ers than comparable domestic firms. (and almost all takeovers from non-WTO to 42 per cent) thought the other compan- ship, but in fact foreign ownership of indus- The Canadian economy is inextricably states) will be judged based on net benefit ies strategic. trial capacity has lessened since 1971, when interconnected with the global marketplace. to Canada. The market cap of these iconic compan- 35 per cent of firms were foreign-owned; Any net benefits test must be placed in Considerations include the effect on: ies ranged from effectively zero for AECL to since the mid-1980s, foreign ownership has the broader international context, if for no employment, resource processing and more than $54 billion for EnCana, four were ranged between 21 per cent and 25 per cent. other reason than our economy needs two utilization of parts and services produced Crown corporations, six were heavily regu- Indeed, Canada currently is a net owner, way flows of money, people and ideas to in Canada; participation by Canadians in lated resource or service firms and three not seller, of assets. Foreigners have invested compete in the 21st century. the resulting entity; productivity, industrial were manufacturers. $549 billion in Canada, while Canada’s invest- Peter W.B. Phillips is a professor at the efficiency, technological development and Interestingly, the lowest support was ments abroad total $593 billion. Johnson Shoyama Graduate School of Public product innovation; competition; national for Bell, which is the only company in the On the list of iconic Canadian compan- Policy, University of Saskatchewan. industrial, economic and cultural policies; list primarily serving the Canadian market. ies presented by Gandalf Group, most have [email protected] BACK TO PARLIAMENT2011

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For more information or to reserve your government relations and public affairs advertising space, contact The Hill Times display advertising department at 613-232-5952 ext. 213 EMBASSY, Wednesday, January 12, 2011—15 Canada’s Strategic Resources Policy Briefing Fair, accountable foreign investment also invested $500 million into Radarsat I. This, of course, was exactly what was at There has been much talk about the need to CLAUDE GRAVELLE These two examples highlight a major stake in the case of BHP’s attempted takeover define what are “strategic” industries that need shortcoming with the current legislation: a of Potash Corp. BHP, a company with assets special consideration in foreign investment AND NATHAN CULLEN total lack of transparency and accountability. exceeding those of many countries, would in review. But the notion that you can define some- Under the ICA, the government applies the future subject the interests of the people thing as “strategic” in the absence of a vision for a crude standard to foreign investment and of Saskatchewan to the strategic interests of Canada’s economic future is clearly absurd. he New Democratic Party strongly claims to approve takeovers involving assets its global empire. The two are clearly not syn- The vision, backed by a thorough and trans- believes in legislation that would of over $300 million (this will increase to onymous, and to that extent, the ability of the parent review process, will dictate those sectors encourage foreign investment that $600 million, and eventually $1 billion) only if people of Saskatchewan to chart their economic of the economy that are clearly too important to Tbrings a true “net benefit’” to Canadian they result in a “net benefit” for Canadians. future, as workers and as citizens, would be Canadians to allow non-nationals to take control. workers, their communities and to Canada as However, since the process of review lacks undermined were the deal to have gone through. The absence of such a vision leaves this country a whole. But the process of assessing foreign clarity or even a definition of benefit, and pro- It is important to acknowledge the critical vulnerable to the buffeting of market forces and investment in Canada must be more public, vides no opportunity for public input, the gov- importance of attracting foreign capital to the loss of Canadian economic independence. transparent and accountable to Canadians. ernment’s rationale for approving acquisitions help grow the Canadian economy. We wel- New Democrats have identified several The industry minister has himself acknowl- of Canadian companies by foreign concerns is come foreign investment that introduces new key flaws in the Investment Canada Act that edged that changes are needed to the 1985 unavailable. Without knowing the conditions technology, raises productivity and living warrant immediate fixing. Following on the Investment Canada Act which governs foreign it applies to takeovers, there is no way to hold standards, creates new jobs or enables sig- successful Roundtable on Foreign Investment investment in Canada, and his department’s either the government or the foreign businesses nificant growth of Canadian controlled firms. held in Ottawa last December that brought own website notes that “there has not been a responsible for failure to keep their promises. On the other hand, takeovers motivated by together New Democrats, stakeholders and policy review of the ICA [Investment Canada But there is no shortage of evidence no goal other than consolidation in a global mar- labour leaders representing more than a mil- Act] since it was enacted more than 20 years when a disastrous sell-off has been allowed. ket are likely to carry few if any net benefits for lion Canadian workers, the NDP is preparing ago. During that time, the competitive land- Communities across Canada have seen job lay- workers or their communities. Such takeovers a comprehensive piece of legislation that scape has evolved dramatically...” offs, closures and devastating strikes as a result should be subject to stringent and public analy- seeks to strengthen the Investment Canada To understand the need for real reform, we of foreign takeovers. While foreign investment is sis, and be bound by transparent conditions Act by, among other things: must set the context. In the 25 years since its essential, there is an obvious need to strengthen regarding performance. Those conditions must ■ reducing, not raising, the asset thresh- enactment, and with 14,000 foreign takeovers the ICA to protect Canada’s interest. ensure that the interests of their workforce, the old that determines whether an investment of Canadian firms having taken place, the ICA Over the past two years, NDP Mining communities in which they are located, and the is subject to review; was invoked for the first time in 2008. critic Claude Gravelle has tabled several Canadian economy, are protected. ■ providing explicit, transparent criteria National security, intellectual property pieces of legislation seeking to amend vari- Controlling the level and structure of for the “net benefit to Canada” test, with an concerns and pushback from the public and ous elements of the ICA to ensure foreign foreign investment in Canada is a delicate bal- emphasis on the impact of foreign invest- opposition parties forced Stephen Harper’s takeovers are reviewed in a more transpar- ancing act and it cannot be accomplished in ment on communities, jobs, pensions and Conservative government to block the ent and accountable way. There have also the absence of a pan-Canadian vision of what new capital investments; sale of the space division of MacDonald, been two NDP Opposition Day motions our economy should and can be. But we can- ■ requiring public hearings that allow Dettwiler & Associates, a technology com- debated and passed in Parliament. not count on the Harper government to lead for community input into decisions on both pany which owned Radarsat I and Radarsat For a country like Canada, whose his- the national discourse that defines this vision. the assessment of “net benefit” and condi- II satellites built with hundreds of millions tory documents an effort to create a national The fire sale in Canadian resources, from tions to apply to the investment; of Canadian tax dollars, to US-based weap- economy through strategic public interven- oil and gas to nickel and potash, is reflected in ■ public disclosure of all commitments ons manufacturer Alliant Techsystems. tion in the face of unhelpful market pressures, the decline of Canada’s manufacturing sector. undertaken by potential investors; In 2010, under more public and political control of the economy’s crucial resources Manufacturing’s share of total employment fell ■ transparent decisions with reasons and pressure, the Harper government rejected and industries is critically important. to 10 per cent in November 2010, the lowest clear conditions that must be met by the the proposed takeover of Potash Corp. by As Kari Levitt, emerita professor of eco- since before 1976, when Statistics Canada began investor; Australia-based mining conglomerate BHP nomics at McGill University, pointed out comparable records. Today’s number is down ■ ongoing monitoring of performance Billiton for over $38 billion. On Nov. 15, BHP in a recent lecture, the difference between from 15 per cent in the early 2000s and 19 per to ensure conditions are met and investor Billiton formally withdrew its bid. incoming foreign portfolio capital and foreign cent in 1976. Hundreds of thousands of well- commitments are implemented and, In the MDA and Potash cases, public reac- direct investment is one of control. She notes paid, family-supporting jobs have disappeared. ■ imposition of effective penalties, tion to the takeover bids from across the that “a subsidiary or affiliate of a multination- While other factors are also at play, foreign where appropriate. political spectrum was swift and deeply critical al corporation located in Canada is not sim- investment drawn to Canada’s resource sector Claude Gravelle is the NDP critic for mining. because Canadians appreciated the signifi- ply a firm whose owners are non-resident. It by permissive government policies—including Nathan Cullen is the NDP critic for natural cance of these two companies to the Canadian is an integral part of a larger enterprise and those of previous Liberal governments—and resources. economy. In the case of MDA, Canadians had subject to its strategic considerations.” lax royalty regimes is a major influence. [email protected]

Proved natural gas reserves (Trillion cubic metres) At end At end At end At end Share of Production At end At end At end At end Share of Production 1989 1999 2008 2009 total (%) Reserves ratio 1989 1999 2008 2009 total (%) Reserves ratio Oman 0.28 0.83 0.98 34.6 0.98 0.5 39.6 US 4.73 4.74 6.93 244.7 6.93 3.7 11.7 Qatar 4.62 11.16 25.37 895.8 25.37 13.5 * Canada 2.73 1.72 1.75 62.0 1.75 0.9 10.9 Saudi Arabia 5.22 6.15 7.57 279.7 7.92 4.2 * Mexico 2.06 0.86 0.50 16.8 0.48 0.3 8.2 Syria 0.16 0.24 0.28 10.0 0.28 0.2 48.9 Total North America 9.52 7.32 9.18 323.4 9.16 4.9 11.3 United Arab Emirates 5.65 6.00 6.43 227.1 6.43 3.4 * Argentina 0.67 0.73 0.40 13.2 0.37 0.2 9.1 Yemen 0.20 0.48 0.49 17.3 0.49 0.3 * Bolivia 0.12 0.52 0.71 25.1 0.71 0.4 57.9 Other Middle East 0.01 0.01 0.05 2.2 0.06 24.2 Brazil 0.11 0.23 0.36 12.7 0.36 0.2 30.4 Total Middle East 37.83 54.74 75.82 2690.4 76.18 40.6 * Colombia 0.11 0.19 0.11 4.4 0.12 0.1 11.8 Algeria 3.25 4.52 4.50 159.1 4.50 2.4 55.3 Peru 0.34 0.25 0.25 11.2 0.32 0.2 91.3 Egypt 0.35 1.22 2.15 77.3 2.19 1.2 34.9 Trinidad & Tobago 0.29 0.61 0.44 15.4 0.44 0.2 10.7 Libya 1.22 1.32 1.54 54.4 1.54 0.8 * Venezuela 2.99 4.15 4.98 200.1 5.67 3.0 * Nigeria 2.83 3.51 5.25 185.4 5.25 2.8 * Other South & Central America 0.17 0.14 0.07 2.5 0.07 19.7 Other Africa 0.82 0.87 1.27 45.0 1.27 0.7 65.3 Total South & Central America 4.80 6.81 7.32 284.6 8.06 4.3 53.2 Total Africa 8.48 11.44 14.71 521.2 14.76 7.9 72.4 Azerbaijan n/a 1.23 1.31 46.3 1.31 0.7 88.8 Australia 0.96 1.99 3.08 108.7 3.08 1.6 72.7 Denmark 0.11 0.14 0.06 2.3 0.06 7.6 Bangladesh 0.73 0.32 0.34 12.5 0.36 0.2 18.0 Germany 0.29 0.23 0.10 2.7 0.08 6.4 Brunei 0.32 0.37 0.35 12.4 0.35 0.2 30.7 Italy 0.30 0.19 0.06 2.3 0.06 8.6 China 1.02 1.37 2.46 86.7 2.46 1.3 28.8 Kazakhstan n/a 1.78 1.82 64.4 1.82 1.0 56.6 India 0.69 0.65 1.09 39.4 1.12 0.6 28.4 Netherlands 1.57 1.55 1.14 38.3 1.09 0.6 17.3 Indonesia 2.55 2.62 3.18 112.5 3.18 1.7 44.3 Norway 1.73 1.25 2.22 72.3 2.05 1.1 19.8 Malaysia 1.61 2.48 2.38 84.1 2.38 1.3 38.0 Poland 0.16 0.15 0.11 3.8 0.11 0.1 26.6 Myanmar 0.27 0.29 0.57 20.1 0.57 0.3 49.4 Romania 0.13 0.35 0.63 22.2 0.63 0.3 57.9 Pakistan 0.65 0.70 0.84 32.0 0.91 0.5 23.9 Russian Federation n/a 42.44 43.30 1567.1 44.38 23.7 84.1 Papua New Guinea 0.23 0.43 0.44 15.6 0.44 0.2 * Turkmenistan n/a 2.59 8.10 286.2 8.10 4.3 * Thailand 0.23 0.35 0.34 12.7 0.36 0.2 11.6 Ukraine n/a 1.01 0.98 34.7 0.98 0.5 51.0 Vietnam – 0.17 0.56 24.1 0.68 0.4 85.2 United Kingdom 0.56 1.27 0.29 10.3 0.29 0.2 4.9 Other Asia Pacific 0.26 0.34 0.36 12.9 0.36 0.2 20.9 Uzbekistan n/a 1.58 1.68 59.4 1.68 0.9 26.1 Total Asia Pacific 9.50 12.07 16.00 573.6 16.24 8.7 37.0 Other Europe & Eurasia 47.41 0.43 0.45 15.7 0.44 0.2 46.6 Total World 122.40 148.55 185.28 6621.2 187.49 100.0 62.8 Total Europe & Eurasia 52.28 56.17 62.26 2228.1 63.09 33.7 64.8 Of which: Bahrain 0.18 0.12 0.09 3.0 0.09 6.7 European Union 3.36 3.98 2.49 85.5 2.42 1.3 14.1 Iran 17.00 25.00 29.61 1045.7 29.61 15.8 * OECD 15.60 14.26 16.44 571.2 16.18 8.6 14.4 Iraq 3.12 3.29 3.17 111.9 3.17 1.7 * Former Soviet Union 47.06 50.85 57.46 2067.1 58.53 31.2 8 Kuwait 1.40 1.48 1.78 63.0 1.78 1.0 * Source: British Petroleum Statistical Review of World Energy 2010 EMBASSY, Wednesday, January 12, 2011—16 Canada’s Strategic Resources Policy Briefing Water: ‘The’ key strategic resource

natural resources. In turn, water is a critical shale gas, issues of both water quantity and allocation approaches not necessarily well- DAVID MCLAUGHLIN component in the development of the energy, quality will continue. positioned for potential future water short- forest, mining and agricultural products that ■ The mining and forest sectors, also ages; a limited number of policy instru- contribute so much to Canada’s economic relatively small users of water, have the ments to allow for allocation during times askatchewan Premier Brad Wall wealth and social well-being. potential to significantly impact water quality of scarcity; and incomplete data on actual recently used the term “strategic The natural resource sectors use and con- in the regions and watersheds where they are water use by the sectors. resource” to describe the importance sume more water than any other sector in the located. The potential for long-term effects of Later this year, the NRTEE will issue a Sof his province’s potash deposits. nation, accounting, in 2005, for approximately operations on the health of the surrounding second report that will provide answers to Other politicians in this country have also 84 per cent of Canada’s water use. This varies ecosystems is of particular concern. some of these key challenges surrounding used the phrase to describe many of this by sector and activity. For example: According to forecasts, the natural resour- good governance and management of water nation’s natural resources, including: oil ■ The thermal electrical power generation ces sector is expected to experience growth for the natural resource sectors. From water sands; natural gas, including shale gas; ura- sector withdrew 64 per cent of water across of 50 to 65 per cent by 2030. Added to other pricing to shared watershed governance, we nium; and hydro electricity. Canada in 2005, making it the greatest water stresses, like climate change and a resultant are studying how best Canada can come to The phrase “strategic resource” elicits user in the country and the second-largest increase in the frequency of extreme weather grips with a looming problem ahead. an image of a unique and important com- consumer of water in the country, after agricul- events, the National Round Table on the Good governance and effective, efficient modity, with the need to manage it carefully ture, where water is not returned to the natural Environment and the Economy concluded in management of our water resources is essen- to provide ongoing prosperity for a country environment. This sector’s activities can also our Changing Currents report last year that the tial for Canada’s other “strategic resources.” or region, both now and into the future. affect water quality, with concerns over chem- long-term sustainability of our water resour- A strong economy needs a resilient environ- Underpinning the sustainable develop- ical and thermal contamination of water bodies. ces is coming into question. A potential for ment. It is essential that, as we foster eco- ment of each of these other resources is one ■ The hydroelectric power generation future conflicts over water availability for all nomic growth and development, we do so common resource: water. With a perceived sector is completely reliant on the availabil- the users who want it could well exist. while protecting the very watersheds whose abundance of water, many Canadians often ity of water. It can have important impacts The NRTEE is examining industrial water use flows sustain this industrial use. take it for granted. This is a misperception. on ecosystems and downstream users. by the natural resource sectors to ensure quan- Governments and industry still have many While Canada has one-half of one per Future expansions will need to consider this tities are sufficient, watersheds and ecosystems options available to them to resolve these chal- cent of the world’s population and retains factor, especially in areas where competing are protected, and the sector continues to grow. lenges, before water availability and ecosystem 20 per cent of the world’s freshwater, our uses for water are anticipated. Sustainable development of our natural resour- degradation evolve from localized issues to nation contains only seven per cent of ■ The oil and gas sector, while a small ces requires sustainable water use alongside. more significant national problems. If we want the world’s renewable supply. Moreover, overall user in comparison to other sec- Changing Currents highlighted the cen- to sustainably develop our “strategic resour- approximately 60 per cent of our fresh sur- tors, can still lead to quantity concerns at tral importance of good governance and ces” then we need to be just as strategic about face water flows north, while 85 per cent of a localized level, creating potential impacts efficient water management for industrial the way we govern and manage our water. Canada’s population and many of our eco- on water quality and ecosystem integrity, use. Looking ahead, Canada has real chal- David McLaughlin is president and chief nomic activities are present in the south. particularly on a regional and watershed lenges on its hands. They include dealing executive officer of the National Round Table Population increases and economic basis. With significant growth anticipated with: multiple jurisdictions, all with dif- on the Environment and the Economy. growth will increase demand on, and for, our for the sector, particularly in oil sands and ferent roles in water management; water [email protected] Canada and the future of critical minerals The outlook is for historically high pric- considerable alarm when Beijing blocked Inc.’s Mount Pleasant Mine in New LEE A. GROAT es because of increased demand (for manu- shipments of REEs to Japan in mid-2010 Brunswick holds approximately 15 to facturing and investment) and constrained amid a debate over disputed islands. 20 per cent of the world’s total known supply. Shortages of water, electricity and Concerns about supply restrictions indium resources. ecent reports in the media suggest skilled labour are expected to negatively have led to increased demand for alterna- The main use of niobium is to strength- increasing concern over access to impact supply from South Africa. In Russia tive sources. Molycorp Minerals LLC is en steel. Niobium is also used in superal- some minerals and their constituent and Canada, the PGMs are largely pro- planning to reopen the Mountain Pass loys in jet and rocket engines and in the Relements. duced as by-products of nickel and copper mine in California, which from 1950 to superconducting magnets of MRI scan- New and more complex technologies mining and supply is largely influenced by 1988 was the world’s leading producer of ners. Other elements can be substituted have led to a dramatic demand in some production of these elements. REEs. In Canada, advanced exploration for niobium in these applications, but a elements formerly used in only relatively The rare and develop- performance or cost penalty may ensue. small quantities. earths are ment proj- Two Brazilian mines produce approxi- On the supply side, availability is affect- a group of ects include mately 85 per cent of the world supply ed by complex supply chains, dependence 17 elements Hoidas Lake, of niobium. The third largest producer on the part of many developed nations composed Saskatchewan is the Niobec mine near Chicoutimi in on imports, export restrictions, resource of the lan- (Great Western Quebec (Iamgold Corporation) which nationalism, and increased industry con- thanides, Minerals Group produces approximately eight per cent of centration due to mergers and acquisitions. yttrium and Ltd.), Strange the world supply. As a traditional exporter of raw mate- scandium. Lake in Quebec Other elements not evaluated by the US rials, reduced availability would have Their unique (Quest Rare National Research Council but discussed in little direct effect on Canada, but it would properties Minerals a presentation by the Committee Chair RG impact our trade partners and our access are used in a Ltd.), and Eggert in a recent presentation include cad- to products that use these elements. wide variety Nechalacho mium (24 years remaining at 2008 production The US National Research Council of applica- (Thor Lake) in rates), copper (35), and molybdenum (41). defines critical minerals (actually ele- tions includ- the Northwest Canada has an important role to play in ments) as those that are important in use ing automo- Territories reducing element criticality. Our country has and subject to supply restriction. tive catalytic (Avalon Rare (largely undeveloped or partly developed) Their “Criticality Matrix” illustrates both converters, Metals Inc.). deposits of many of these elements, and the impact and risk of a supply restriction. permanent Manganese with the world’s second-largest land mass, In 2008 they used this concept to evalu- magnets and rechargeable batteries for is essential to iron and steel production and low population and extensive vegetative ate the criticality of 11 elements from the electric and hybrid vehicles. is a key component of certain aluminum cover, significant potential for discovery. perspective of the United States. Those The rare earths are relatively abun- alloys and batteries. South Africa accounts Canadian geoscientists (researchers, exhibiting the highest degree of criticality dant in the Earth’s crust but discovered for about 80 per cent of the world’s identified explorers, and miners) and companies are were the platinum group minerals (PGMs), minable concentrations are less com- manganese resources, and Ukraine for 10 per world leaders in the discovery and extraction the rare earth elements (REEs), manganese, mon than for most other elements. China cent. Manganese has no satisfactory substi- of these elements, and there is ready access indium and niobium. This list will undoubt- accounts for 97 per cent of the global pro- tute in its major applications. to capital via the national stock exchanges. edly be different for other nations. duction of REEs and her recent actions Indium is used in liquid crystal displays Despite the fact that it takes many The platinum group minerals are rho- in the market have led to considerable (LCDs) and copper-indium-gallium-selenide years to develop a deposit, it is very likely dium (most critical), platinum, and palla- media attention. Export quotas have been (CIGS) thin-film solar cells. Most indium is that a considerable percentage of the dium (least critical). Their primary use is reduced over the past few years in order produced as a byproduct of zinc refining. world’s supply of critical elements will be in catalytic convertors in automobiles, for to cope with increasing domestic demand China supplies approximately 50 per supplied by Canada in the future. which there are no commercially viable and because of environmental concerns. cent of the world’s indium, followed Lee A. Groat is a professor at the Univer- substitutes. In December, China’s Commerce by South Korea (14 per cent), Japan sity of British Columbia’s Department of Total mine production in 2008 was 59 Ministry announced that it would be reduc- (10 per cent), and Canada (8 per cent), Earth and Ocean Sciences, and director of per cent from South Africa, 26 per cent ing the amounts of REEs it will export in largely from Teck Metals Ltd.’s refinery UBC’s Integrated Sciences section. from Russia and six per cent from Canada. 2011 by 11 per cent. In addition, there was in Trail, British Columbia. Adex Mining [email protected] EMBASSY, Wednesday, January 12, 2011—17 Canada’s Strategic Resources Policy Briefing A new era for commodity markets ment of perfect competition than not. Enter developments of the past 20 years Also, in discussions related to BHP’s DAVID S. JACKS The example of the Anglo-Persian Oil and prospects for the future become less attempt to buy out the Potash Company Company (the predecessor of today’s British clear. Rather than the private firms of the early of Saskatchewan and Sinochem’s also-ran Petroleum), which was privately founded 20th century or the public entities of the late status, Sinochem officials made it clear s the long-running bull market in in 1908 and publicly recapitalized in 1913 in 20th century, it seems that the supply of com- that their primary objective in any poten- commodities continues to rage, per- exchange for a controlling interest on the modities in general, and strategic resources in tial takeover would be to monopolize ceptions of resource scarcity and part of the UK government, was very much particular, may be governed more and more Potash Corp’s output for itself and, thus, Aconcerns over the future control of the exception which proved the rule. by creatures resembling Anglo-Persian, namely deal a decisive blow to the burgeoning these assets have emerged. The pattern of private ownership of resourc- companies which are domestically operated global market for potash by limiting out- Of course, this story has played out before: es established in this earlier period survived for but controlled by foreign governments. side access. the late-19th century spread of industrializa- the most part the combined tumult of the First In particular, the establishment of sov- At a minimum, this suggests a few stan- tion across the globe, but especially to North World War and the fractious inter-war period. ereign wealth funds and, above all, the dards to which the Canadian government America, as well as the post-Second World However, the twin shocks of Second rise of China and its host of state-owned should hold all potential foreign investors in War re-construction and re-industrialization of World War and decolonization affected a enterprises with foreign affiliates raise new its strategic resources. Europe and Japan, both gave rise to so-called dramatic reorganization in the ownership of challenges for the equitable and efficient First, beyond the typical disclosure of commodity super-cycles. These are typified by resources around the globe. governance of the resource industry. financials, the full scale of a suitor’s opera- rapid growth in commodity demand combining Wartime mobilization in many Western In this new landscape, surmising the alle- tions, ownership, and intentions should be with tight supply conditions to produce decades- nations and the reassertion of native politi- giances and intentions of the backing parties made explored. long increase in the real prices of commodities. cal power in the colonies were more often is paramount. On the one hand, the continued Second, ensuring a commitment to open What sets present-day experience apart is than not followed by calls for the national- commitment to maintaining a level playing field and non-discriminatory access to resources not only the scale of the underlying demand ization of domestic resources. in terms of market access and downplaying for all buyers in global markets is not only for resources, which promises to extend the For example, the aforementioned Anglo- diplomatic and/or political goals demonstrated consistent with Canadian principles and current cycle’s timeframe, but also, and more Persian Oil Company slipped from British by Norway’s Petroleum Fund and Singapore’s institutions but also represents the provi- importantly for present purposes, the evolving control in 1951 on a rising tide of Persian GIC and Temasek Holdings is heartening. sion of an important global public good. nature of ownership in the resource industry. nationalism and resentment over the repa- On the other hand, very recent develop- Finally, as with any foreign venture In the late 19th and early 20th centuries, glob- ration of resource rents abroad. ments with respect to China raise some cause on domestic soil, it is essential that such al commodity markets were primarily serviced The predominant form of ownership in for concern. The decision to first block ship- investments should produce demonstrable on the supply side by privately-held firms. key resources such as coal, copper and petro- ments and then slash annual export quotas of benefits for Canadian citizens on grounds of Although oftentimes enjoying considerable leum thus evolved from private to public, rare earth minerals reflect a potentially all-too- both enhancing native welfare and maintain- support—including diplomatic, financial and but attempts at cartelization (and in some easy willingness on the part of Beijing to allow ing legitimacy in the eyes of the public. military aid—from their respective govern- cases embargo) aside, this did not represent considerations of diplomacy and industrial David S. Jacks is an associate professor of ments, these firms operated in an environment a generalized retreat from global commodity policy to impinge upon the working of global economics at Simon Fraser University. closer to the classic economics textbook treat- markets: supply was open to all takers. commodity markets. [email protected]

Capital expenditures in energy industries (millions of dollars) Foreign Direct Investment Stocks (in millions of dollars) 2005 2006 2007 2008 2009 Industry 2005 2006 2007 2008 2009 Conventional oil and gas extraction 32,190.5 36,054.6 29,949.1 29,532.3 19,803.9 Oil and gas extraction 49,548 50,129 64,754 69,718 71,634 Non-conventional oil extraction 9,857.4 12,228.0 16,815.8 20,663.1 13,538.7 Mining (except oil and gas) 10,352 22,518 24,805 25,268 25,432 Coal mining 605.9 407.7 405.3 809.5 444.3 Support activities for mining 4,224 5,404 5,173 7,046 7,206 Uranium ore mining x x x x x and oil and gas extraction Support activities for mining and oil and gas extraction 2,681.8 4,172.2 5,167.5 5,713.3 2,566.9 Total 64,124 78,051 94,733 102,033 104,272 Pipeline transportation 838.5 2,001.1 2,255.0 5,417.8 4,752.3 Wood and paper industry 2007 2008 2009 Petroleum and coal products manufacturing 2,759.3 2,688.3 2,478.7 3,009.2 1,837.5 United States 11,233 7,371 6,603 Petroleum product wholesaler-distributors 241.7 299.7 327.0 282.3 384.4 United Kingdom x x x Gasoline stations 770.8 790.8 741.8 892.5 756.4 Other EU countries 1,318 1,380 1,371 Natural gas distribution 1,158.2 1,380.7 1,563.1 1,527.1 1,242.0 Japan 756 706 636 Electric power generation, transmission and distribution 9,814.1 11,774.9 14,179.8 15,570.8 18,843.5 Other OECD countries x x x Sources: Natural Resources Canada; Statistics Canada. All other countries 652 678 692 Notes: Mineral trade includes coal. Totals may not add due to rounding. World 15,577 12,436 11,628

Energy and metallic minerals industry 2007 2008 2009 United States 78,422 76,858 80,415 United Kingdom 25,148 34,597 30,176 ($000s) Value of Canadian Mineral Trade by Country, 2009 Other EU countries 28,054 37,996 39,865 Country Total Imports Total Exports Total Trade Balance of Trade Japan 1,023 1,209 1,247 United States 30,305,780 36,615,452 66,921,233 6,309,672 Other OECD countries 2,755 5,525 7,248 EU-27 4,662,912 12,862,149 17,525,061 8,199,237 All other countries 32,649 36,278 40,060 China 5,025,196 3,913,254 8,938,450 -1,111,942 World 168,052 192,463 199,011 Japan 979,956 2,910,054 3,890,010 1,930,098 x = withheld for reasons of confidentiality Mexico 2,059,995 599,335 2,659,329 -1,460,660 Source: Department of Foreign Affairs and International Trade Peru 2,438,537 18,863 2,457,400 -2,419,674 South Korea 571,482 1,884,972 2,456,454 1,313,490 Value of Canadian Metal Export Trade by Norway 90,154 1,473,526 1,563,681 1,383,372 Brazil 1,024,027 500,051 1,524,078 -523,976 Commodity, 2008 and 2009 ($000s) India 437,267 827,500 1,264,768 390,233 Commodity 2008 2009 Chile 943,895 165,221 1,109,116 -778,674 Iron and steel 17,003,013 10,313,075 Taiwan 669,441 423,280 1,092,721 -246,161 Gold 8,968,838 9,381,023 Australia 10,032,048 4,814,043 14,846,091 -5,218,005 Aluminum 11,848,355 7,650,155 Total Canada 59,240,690 67,007,700 126,248,390 7,767,010 Miscellaneous metal products 6,289,748 4,669,160 Copper 6,585,103 4,099,917 Nickel 7,468,721 3,470,382 Iron ore 3,086,186 3,369,454 Uranium and thorium 2,037,647 1,747,656 Value of Canadian Mineral Trade, 2009 ($000s) Zinc 1,885,066 1,424,778 Silver 806,280 813,884 Domestic Exports Total Exports Total Imports Balance of Trade Lead 652,893 524,854 Stage 1 19,714,503 19,890,588 6,959,352 12,931,236 Vanadium 373,850 346,019 Stage 2 21,873,693 22,049,792 7,740,236 14,309,556 Cobalt 765,992 321,340 Stage 3 12,389,174 13,155,479 15,272,430 -2,116,951 Molybdenum 560,138 250,962 Stage 4 10,086,131 11,304,476 25,216,798 -13,912,322 All other metals 1,048,798 736,821 Total 64,063,501 66,400,335 55,188,816 11,211,519 Total metal exports 69,380,629 49,119,479 Sources: Natural Resources Canada; Statistics Canada. Sources: Natural Resources Canada; Statistics Canada. Notes: Mineral trade includes coal. Totals may not add due to rounding. Notes: Totals may not add due to rounding. EMBASSY, Wednesday, January 12, 2011—18 Canada’s Strategic Resources Policy Briefing Strategies for tapping Arctic resources think of Northern development as an exten- That said, the North finds itself in a in energy or other sectors, has to bring JOSEPH DOUCET, sion of Southern development. potentially interesting position with appre- with it Northern benefits. Environmental For many, energy or economic opportunities, ciable reserves (some proven, others poten- and social risks—and there clearly are risks RICHARD DIXON are automatically thought of as linkages tial) of resources and potentially valuable associated with resource development— between the North and Canada’s South. A good new access to markets with the opening up have to be compensated by local benefits in AND ANDREW LEACH example of this is the proposed Mackenzie of new shipping routes in the Arctic Ocean. order to justify the tradeoff. Careful analysis Valley pipeline—a potential connection of gas Is the development of primary resources, of projects is required in order to ensure resources in includ- local benefits. anada’s North is changing, that is the Northwest ing energy So in thinking about energy and develop- not a question. The real question for Territories resources, a ment opportunities for the North, it is likely Canadians is how we can collectively with Southern good thing? at least as important to turn our gaze to the Crespond to climatic, political and social gas networks Some would Northern frontier as it is to the South. changes in productive ways that serve the and markets. say not, sug- For instance, while no one rejoices at development needs of the North while also In order to gesting the the melting of the polar ice cap, we have moving our country forward. get a better end of the to ask what it means in terms of increased How should energy and natural resourc- picture of the carbon fuel shipping activity, with its costs and benefits es be developed? What changes to territo- real “frontier” economy or for Northern Canada and our northern com- rial rights and responsibilities need to be for Northern the dangers of munities. What are the impacts on energy initiated in order to move forward? development, dependency accessibility for the North? What does and Our first observation is that a fundamen- we have to on global eco- will the territories have to offer internation- tal prerequisite to successfully addressing look north nomic trends. al markets as Arctic shipping routes become both the opportunities and challenges in not from our We don’t more open? What comparative advantage Canada’s North is the active involvement (Southern) share this pes- will there be? and engagement of Northern peoples. perspective, simism. While Finally, any strategy for northern We are proud that the University of but rather petroleum development should include a sustain- Alberta’s Northern Strategy commits to part- from the absolutely is a ability focus. However, sustainability nering with Northern governments and institu- perspective Diavik Diamond mine in the Northwest Territories. finite resource, of the northern economies and peoples tions in order to develop capacity in the North. of Canada’s most knowl- need not be at odds with resource It is recognized that this is fundamentally North, toward edgeable development. A strategy which leads to different from simply developing capacity the Arctic ocean, toward shipping routes, and observers, including neutral agencies such as investment in sectors and technologies or knowledge about the North. Thus, while toward other Arctic nations. Our Southern mar- the International Energy Agency, expect the that enable the North to engage with Canada’s North involves us all in some way, as kets are, of course, still relevant, but they are world to continue to find and use natural gas, oil other economies, to create local value, to Canadians, appropriate actions or responses not the only game in town. and coal for a long time. export goods and services and to devel- need and require local knowledge and values We have suggested two views of the world If anything, growing demand will con- op its workforce is required. and this requires capacity building, particu- that don’t help us solve the challenges per se, tinue to create upward pressure on prices, Will this mean an exclusive focus on larly skills and education, in the North. but rather should be starting conditions for suggesting a growing value for owners and resources and energy? We doubt it. Could A logical consequence of this is a thoughtful analysis and policy development: Recognition developers of the resources. Likewise min- resources and energy be a part of the pic- and purposeful move toward more territorial of the need for Northern capacity building, eral commodities continue to be in high ture? We think that it is certainly possible, involvement in and responsibility for resource including governance and resource manage- demand despite cyclical fluctuations. and hope that Northerners will be an active exploration and development. A greater sense ment; and openness to a view of the world It seems that if the North can develop party to that decision. of ownership, of both the resources and the that is not Southern-centric. industries based on natural resources, Joseph Doucet is the Enbridge professor responsibility of stewardship, will involve the What does this mean for Northern Canada hopefully with local value-added, and if this of energy policy at the University of Alberta’s territorial governments and residents as true and how does it relate to global challenges can be done with appropriate environmen- Centre for Applied Business Research in partners in development decisions. and opportunities? Much of the change that tal safeguards, and contribute to economic Energy and the Environment. Richard Dixon is Our second observation regards the per- the North faces will be foist upon us, either by development of the region, then we should executive director of CABREE. Andrew Leach spective that we Southerners tend to bring climate, international trade or international certainly see this as a positive step. is a research assistant professor at CABREE. to the discussion. We in the South tend to diplomacy, whether we like it or not. Clearly northern development, whether [email protected] Linking environment with development this is expected to lie within Russian ter- report on the environmental and health that opens up the pores in the shale, because ANDREW D. MIALL ritorial limits. impacts of the oil-sands industry, released the used water is returned to the surface with These reserves, in total, do not change in December, indicates that environmental the gas, generating concerns about possible the concerns about “peak oil” that were conditions in the development area are com- pollution of surface fresh water. rime Minister Stephen Harper has first expressed by geologist King Hubbert parable to those of industrialized urban set- There is a widespread unease that envi- described Canada as an “energy in 1956. Current estimates suggest that the tings, and that while severe health problems ronmental issues are being subordinated to superpower.” “peak” (the moment when consumption have not yet been detected, significant eco- business interests. In most jurisdictions in P The basis for this statement is overtakes new discovery, and remaining logical disturbance is taking place. Tailings North America, water-use licensing is under that the Alberta oil sands are among the reserves begin to finally run out) will arrive clean-up and land reclamation will require the authority of state/province oil and gas largest known remaining reserves of petro- sometime in the middle of this century. continued attention and investment for many regulators, not environmental departments. leum in the world. When the oil sands are Only about seven per cent of the world’s years to come. The Science Advisory Panel commissioned by counted in, Canada has more petroleum in reserves are located in areas open to the Amongst the most important environ- Environment Canada to report on environmen- reserve than Saudi Arabia. world’s major oil companies. The remainder mental issues are those relating to water. tal monitoring of the oil sands called for a com- In addition, new methods for producing is under the control of national governments, Large amounts of water are required for prehensive system to monitor groundwater shale gas could yield huge volumes of gas in many of them, like Iran and Venezuela, hos- the extraction of the bitumen from the and surface water pollution, and air quality. at least four provinces, extending supplies tile to the West. And there is increasing com- oil sands. Recent developments include There is time to put in place a first-class for many decades. petition for these resources from growing increased recycling of water, and the use science-based system that operates transpar- Meanwhile, Canada’s Arctic regions are economies, such as China and India. of saline groundwater from deep aquifers, ently and is integrated with the project licens- part of one of the largest unexplored areas At the same time, oil sands and shale which will reduce the requirements for ing process. This will require the federal and in the world for resources. The magnitude of gas come with significant environmental water removal from the river systems. Alberta governments to work together, par- these reserves sounds huge. Estimates suggest concerns. The oil-sands production process Current levels of use have been assessed ticularly with regard to their respective legis- as much as 90 billion barrels of oil await dis- is energy intensive, requiring large amounts as not yet excessive, although there are con- lative mandates to protect the environment. covery, in the north, and the Arctic has been of water and natural gas (for heat) to liber- cerns about low water flow during the winter, Up to now, development projects have described as a “vast storehouse” of energy. ate the oil from the sand. Tailings ponds full and about the levels of industrial toxins being been evaluated for their environmental However, it is important to put these of polluted water and the long-term distur- released into surface waters. Water require- impact in isolation; nobody has, as yet, resources into a global perspective. bance of huge areas of boreal forest are only ments for shale gas are, however, enormous. taken proper account of the cumulative Canadian oil sands production is expected the most obvious environmental issues. Water permits that have been issued for impacts of the industry. to reach 3.5 million barrels per day in 2025, Although government- and industry- northeastern British Columbia would allow Andrew D. Miall holds the Gordon Stollery but this is equivalent to only four per cent funded research is gradually improving the extraction from surface water systems of as Chair in basin analysis and petroleum geol- of daily global needs. And 90 billion bar- efficiency and environmental impact of oil much water as is being used by the city of ogy at the University of Toronto. He was rels of oil—the size of the supposed Arctic sands development, the impact will always Victoria. There is a need for more transpar- a member of the Environment Canada Oil storehouse—represents only about 1,000 remain large. ency regarding the chemicals used in the Sands Advisory Panel. days of global consumption. At least half of The Royal Society of Canada expert panel shale gas industry for the “fracing” process [email protected] EMBASSY, Wednesday, January 12, 2011—19 Africa Kenyan crackdown under the sun ■ I also glimpsed another ragged youth who A former Embassy reporter’s had travelled that morning from Kasarani slum. fi rst-hand account of police “If you try to fight for your rights, you will be knocked hard,” he had told me earlier, storming a political rally, and surveying the occupied space. his own subsequent arrest. Walking back down the hill towards the grounds with two network TV cameras on my Jeff Davis heels, I caught sight of the Police commander pointing his stick at me and barking orders to his riot squad. I had arrived that morning wear- olding a copy of Kenya’s new constitu- ing my Daily Nation press pass, but he had Htion high in the air, the presidential nonetheless ordered me to leave the scene and candidate demanded the dozens of police stop interviewing the crowd, threatening me surrounding him to back down and allow his with arrest should I not comply. rally to take place. As the riot cops ran towards me yelling “Under article 37 of the constitution, we “muzungu, muzungu” (“foreigner, foreigner”), have the right to assembly,“ Kenyan member I knew I was in trouble. of Parliament Eugene Wamalwa yelled at the Two burly cops grabbed me and marched police commandant. “We are here to test me across the grounds towards a police Land whether this constitution is a mere piece of Cruiser, the TV cameras filming the whole Photo: Jeff Davis Tear gas spews from a canister at the feet of political activists in Nairobi, Kenya on Dec. 13. paper, or whether this constitution can work.” scene. I demanded to know the reason for It was Dec. 13 and the MP stood alone, save my arrest, but a plainclothes detective would officer, Nairobi’s top cop, ordering my imme- for the corrupt powers to be turfed from for a few reporters, in the middle of Nairobi’s not say. He simply told me to get in the truck, diate and unconditional release from custody. office. America’s plan is to mobilize youth historic Kamukunji Grounds to challenge the or he’d “have to use force.” As soon as I called the newsroom, the Nation’s voters and fund youth organizations, and heavy police presence. His hundreds of young I relented and was taken to the BuruBuru editors and security officers began calling all the police believed I was part of this scheme. supporters stayed cautiously back; all knew Police Station. I peppered the detective with their police contacts to demand my release. I recovered my belongings, and was dis- to expect outbursts of police violence. questions, and resisted as they tried to seize The officer returned and said I was free mayed to find that all the dramatic photos The police commandant was little impressed, my camera and digital voice recorder. to go, and that he hoped I harbored no hard I had snapped that morning were deleted. nor were the ranks of the feared General Service “I am a very dangerous man,” the detec- feelings for this big “misunderstanding.” He But upon returning to the Daily Nation news- Unit riot squad who stood behind him, ready for tive warned cryptically. explained that the police on the scene did not room, I got down to writing and photo editor action in the bright morning light. I shut up and listened to the three chat, believe I was a journalist, despite proper cre- Joan Pereruan managed to recover the delet- “Now I’m telling you the meeting has been and heard the detective say in Swahili: dentials, and suspicion of being an American ed photos, which ran in the next day’s paper. cancelled,” the commandant said coldly. “We “Maybe Reuters.” agent who was organizing and inciting youth Former Embassy reporter Jeff Davis is cur- will use force if we have to.” I was ordered to hand over all my posses- to protest against the government. rently working for the Daily Nation in Nairobi, “We shall not be intimidated,” Mr. sions. After more complaints and demands for For the last week, front-page stories had Kenya through a fellowship with the Aga Khan Wamalwa yelled into nearby television cam- the reason for my arrest, I surrendered them. In detailed Wikileaks revelations that the United Foundation. eras even as a canister of tear gas bounced return I was given a yellow sheet of paper listing States wants “regime change” in Kenya, and [email protected] past his feet and began spewing noxious the seized property. I was then “booked.” clouds. Then, with a great bellow, the lines of Before being led to the cells, I grabbed a GSU charged forward with clubs and shields phone and called the Daily Nation newsroom raised. Soldiers fired warning shots in the and told Jillo, the courts reporter, what had air. The MP and his crowds quickly scattered happened. Then, after being told to remove before them, dashing and ducking into the my shoes, tie and belt, I asked “Am I going in twisting alleyways of the surrounding slum. the cells?”—with more than a small quake in Young voters, sick of the endless corrupt my voice. The cop nodded. antics of Kenyan leaders, had travelled from I gulped and wondered what the hell I across Kenya to throw their support behind a had gotten myself into, imagining all sorts of candidate they hope will bring a new generation burly African convicts and steeling myself. into State House during the 2012 presidential I was led down a narrow, gated hallway elections. They arrived to find eight troop-filled with five doors shooting off the sides. The military trucks cordoning Kamukunji Grounds. first was a smelly toilet room with four dirty Mr. Wamalwa’s post-Independence Day Turkish toilets. I was put in the second one rally, previously authorized, had been where two very tall and built men lounged banned by Kenya’s so-called “two princi- on thin mattresses along the floor. I shook pals”: President Mwai Kibaki and Prime their hands as they looked at me in shock Minister Raila Odinga. The two understand and disbelief, asking: “What are you in for?” the symbolic power of Kamukunji Grounds, I glanced back outside the door of the having used it themselves in the past. cell (none were locked) and saw another With enough space to assemble a crowd seven or 10 prisoners huddled, gawking at of perhaps 5,000, the unassuming grounds me wide-eyed. have long been a place where opposition I asked the big guys if I could sit down on leaders railed against the powers that be. Its their mattress, and they welcomed me as I name meaning “under the sun” in Swahili, it told my story. was host to major pro-independence demon- A few minutes later, I was transferred to strations in the 1950s. It was also a forum for a cell marked “Special Prisoners,” noticing rioting against the autocratic rule of former as I walked that I had been sitting in a cell president Daniel arap Moi, who held the labelled “Dangerous Prisoners.” country under his thumb from 1978 to 2002. The “special” room was less comfortable, In those days, the security services were amounting to a basic eight-foot by eight-foot brutal and lawless, and would assault or concrete box with bare walls and no furniture. kill protestors and political dissidents who I heard the door close and lock behind me. dared to take action. After perhaps an hour I was fetched from the cell and given my shoes and tie back, ‘I am a very dangerous man’ before being questioned by a team of detec- My freshly tear-gassed eyes watering, I dart- tives who grilled me with questions about ed through the slum, looping around to get a my identity and activities that morning. I was better view of the action. Arriving on the street then led upstairs to the office of the District next to the grounds, I saw 40-year-old Fred Chief Investigations Officer, the station’s Wanyonyi fleeing the clash, his eyes ablaze and commanding officer. his body soaked from the torrent of a fire hose. A wave of relief came over me when I “Today’s meeting was to inform the youth saw that Casper Waithaka, another Nation about their rights and the way forward,” reporter and personal friend, was waiting in Mr. Wanyonyi had told me in an interview the upstairs hallway. earlier. “The leaders are not practicing what As the investigations officer reviewed the they say. If they deny Eugene Wamalwa this notes prepared by his subordinates, his cell www.ParliamentNow.ca opportunity to address the meeting, it’s not phone rang and he left the room. I learned right: there’s freedom of expression.” later the call was from the provincial police EMBASSY, Wednesday, January 12, 2011—20 EMBASSY Classifieds INFORMATION AND ADVERTISEMENT PLACEMENT: TEL. 613-232-2922, FAX 613-232-9055

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Rx&D is the national association of leading research-based policies. Within the organization, you will work collaboratively intellectual property, commercialization, and reimbursement issues pharmaceutical companies dedicated to improving the health of with your colleagues and fellow Vice President’s, championing surrounding the industry. You have a proven capacity to drive all Canadians through the discovery and development of new initiatives that integrate specific vaccine and biologic priorities change across organizations, and possess excellent relationship medicines and vaccines. The Rx&D community represents over into the tactical plans of all Rx&D departments and committees. development and collaboration skills. You are known as a leader, 15,000 men and women working for 50 member companies, and Externally, you will create and maintain relationships with results driven and a passionate champion. As a proficient writer, is responsible for generating 60,000 jobs across Canada. Today, member companies, governments, not-for-profit, and health you are able to draft responses and position papers on specific our members are the driving force of research and discovery in policy communities as well as other key stakeholders to develop policy issues. Your ability to communicate in both French and biologics and vaccines which are playing an increasingly important a shared understanding of emerging issues, and to implement English is a highly desired asset. role in the delivery of health care. comprehensive and effective action plans to position Canada as a leader in the area of biologics and vaccines. If you are interested in pursuing this unique opportunity, apply As Vice President, Biologics and Vaccines, you will report to the President and provide support and leadership to Rx&D’s As the ideal candidate, you hold a graduate degree in a related online at www.odgersberndtson.ca/en/careers/9722 or forward Vaccines Committee and the Biologics Committee. You will science and understand the technical language related to the your resume in confidence to Michael Naufal or John Caminiti, focus on increasing the effectiveness of Rx&D’s overall strategy vaccines and biologics industry. You have extensive experience Odgers Berndtson Ottawa at [email protected] and objectives related to access to medicines, and creating world in the vaccines and/or biologics industry and in an association or [email protected]. For more information class innovation, intellectual property, health and pharmaceutical environment, and are very knowledgeable with regulatory, please call Michael or John at 613-742-3198 or 613-742-3202. Executive Search / Interim Management / Leadership Assessment

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EMBASSY, Wednesday, January 12, 2011—22 Envoys & Events Greek envoy to sell economic progress OTTAWA in May on a three-year bail-out package worth about $150 billion in an effort to res- cue the country’s economy. But the country remained in the news Listings ANCA GURZU after thousands of angry Greeks took the streets to protest austerity measures the Submit your Ottawa-based event to listings@embassymag. government enacted to finance that loan. ca or fax to 613-232-9055 by Friday at 5 p.m. Diplomatic Despite the uproar, Mr. Anghelopoulos says the measures are already showing WEDNESDAY, JAN. 12 Circles good results. There have been spending Screening: Cannes International Ad Festival 2010—One might think that paying money to go see leftherios Anghelopoulos has cuts and structural reforms, while the coun- 126 minutes of advertisements is slightly silly. Not in this started his job as Greece’s new try has already started to reduce its deficit; case! Ninety-five spots from all over the world, including ambassador to Canada at a time of and an improved tax collection system is Canada, were chosen by the Cannes jury. From cute ani- critical importance. His country is also in place to tackle Greece’s widespread mals and kids to the Old Spice guy, there is something to E tickle everyone’s funny bone. While some of the picks are slowly trying to improve its international problem with tax avoidance. a little more serious than others, laughs are never too far image, which saw much better days before “I think this economic crisis is affecting away. Dir, various. Runs until Jan. 13. 6:40 p.m. Check its financial problems were thrown into the many countries and we have seen on our schedule for show times. Bytowne Theatre, 325 Rideau St. spotlight in the last year. TVs that somehow similar events take place 613-789-3456 or www.bytowne.ca “I think I would like very much through in other countries,” Mr. Anghelopoulos says Screening: Precious Life—With the help of Israeli my work here to inform all my interlocutors about the protests. “What I am saying is that journalist Schlomi Elder, an Israeli pediatrician and a about the concrete progress that has been I believe the effort of the Greek government Palestinian mother struggle to get treatment for her baby, who achieved [in Greece],” he says. has produced concrete results…. We would suffers from an incurable genetic disease. Set against the backdrop of Israel’s 2008-09 blockade of Gaza, the docu- After having presented his credentials like this image about the improvements, but Photo: Anca Gurzu mentary showcases the possibility of friendship in impossible at the end of November, the energetic Mr. also about the opportunities in Greece, to be circumstances. Dir. Schlomi Elder. Israel, 2010. In English, reflected in the media, and also to become Hebrew and Arabic with English subtitles. 9:20 p.m. Bytowne

Anghelopoulos did not waste any time Embassy embarking on his new mission, creat- known to every Canadian that has, I believe, Greek Ambassador Eleftherios Anghelopoulos. Cinema, 325 Rideau St. 613-789-3456 or www.bytowne.ca ing for himself—and his staff—a packed a positive image about Greece.” schedule. The ambassador is busy meeting The Greek government has also focused The new investment law came into force FRIDAY, JAN. 14 with Canadian politicians and government its economic rebuilding efforts externally. at a very opportune time, just a couple of Beyond the Military Mission officials, as well as attending and hosting There is a new strategy in place meant weeks before International Trade Minister in Afghanistan—NDP Leader events for the Greek community. to increase exports and also a new law Peter Van Loan’s visit to Athens on Dec. Jack Layton will discuss “Canadian Greece made countless international that adopts a “fast-tracked approach to 9 and 10. Mr. Anghelopoulos hopes the Leadership: Beyond the Military Mission in Afghanistan.” Presented headlines last year as one of the European foreign investment,” improving the busi- improved investment climate in his country Union countries most heavily hit by the eco- ness environment in the country, says Mr. by CIPS at the University of Ottawa. will have convinced Mr. Van Loan and his 2 p.m. Free. In English and French. nomic crisis. After intensifying speculation Anghelopoulos, whose last job was that of accompanying business delegation that Room 3120, Desmarais Building, 55 about the possibility Greece would default director general of economic relations, seek- Canada and Greece share interests and can Laurier Ave. E. www.cips.uottawa.ca on its massive debt, euro-zone members ing new bilateral economic opportunities benefit from opportunities in areas such a Screening: London River—In the aftermath of the and the International Monetary Fund agreed for his country. renewable energy and waste management. July 2005 London bombings, two frantic parents, one a Christian, the other Muslim, desperately search for their He’s also hoping a Canada-Greece tax treaty children while developing an uneasy friendship. Dir. Rachid that came into force on Dec. 16, eliminating Bouchareb, Belgium, 2009. 7 p.m. Runs until Jan. 20. Check double taxation in order to prevent fiscal schedule for show times. Bytowne Cinema, 325 Rideau St., evasion, will help matters further. Ottawa, Ont. 613-789-3456 or www.bytowne.ca Mr. Anghelopoulos holds a graduate Inequality and Economic Development in degree in law from the University of Athens China—Dr. Joseph Wong, University of Toronto, will and post-graduate studies in sociology. speak on the topic of “Beneath the Miracle: Inequality New Media and Economic Development in China.” Presented by the He served as his country’s ambassador to Canada-China Friendship Society. 7:30 p.m. $5 non- Georgia and as deputy head of mission at members. Room A, Library and Archives Canada, 395 the embassy in Washington. He has also Wellington St. 613-729-3660 or www.fccfa.ca/Ottawa served in Russia and Belgium. CFUW Snowshoeing Event—The Canadian & Copyright What made the presentation of his cre- Federation of University Women-Diplomatic Hospitality Group dentials in Canada special, he says, is the fact invites spouses of diplomats and women diplomats to join that his family was also invited to the event, them for the group’s first snowshoeing event. For more infor- mation about Friday morning diplomatic socials, call Sherry POLICY BRIEFING something he says is not a universal standard. Pacey at 613-836-5146 or email [email protected] “What was important was that at the beginning of my posting my family mem- bers were present, because we shared this TUESDAY, JAN. 18 moment together,” Mr. Anghelopoulos says. The Impact of Enlargement on the EU—Join The ambassador is married with two guest speaker Giovanni De Girolamo of the European Union Delegation to Canada for a talk on “The Enlargement on the daughters, 15 and 17. European Union: Lessons Learned.” 2:30-4 p.m. Free. Room He says he is ready to start including in 433, Paterson Hall, Carleton University, 1125 Col. By Dr. his busy schedule trips outside of Ottawa, http://www.carleton.ca/ces/ to visit the “big and beautiful country.” Screening: Iranium—The Free Thinking Film Society [email protected] presents a screening of Iranium, a film that looks at Iran’s development of a nuclear program and the potential dangers involved. Followed by a Q&A and reception. 7 p.m. $8-$15. Local and International Moves Library and Archives Canada, 395 Wellington St., Ottawa, Publication Date: Ont. [email protected] Jan. 17, 2011 Booking Deadline: Jan. 12, 2011 150 offi ces in over 50 countries 45 years WEDNESDAY, JAN. 19 African Studies Brownbag Seminar Series— (Noon, Ottawa Time) of experience relocating the international Prof. Doris Buss will discuss “The Politics of Telling (Rwandan diplomatic and expatriate community. History: Prosecuting Genocide at the International Tribunal he Hill Times will dig into “New As well, we’ll look at one of the Parliament. Artists say the bill will for Rwanda.” 1-2:30 p.m. 433 Paterson Hall, Carleton TMedia & Copyright” issues in this hottest issues on the federal scene, give consumers new rights, but University, 1125 Col. Br Dr. 613-520-2600 ext. 2220 or important and timely policy briefing Bill C-32, the Copyright Act, also will not compensate creators for [email protected] on Jan. 17. one of the most lobbied bills in new uses of their work. We’ll look A Court of Last Resort— Parliament. at all the issues: digital locks, the Prof. Errol P. Mendes of the In it, we’ll examine, with leading creators of intellectual content University of Ottawa will discuss his new book Peace and Justice media experts and policy insiders, Bill C-32 is the federal government’s and the protection of their rights, at the International Criminal the massive issue of the future efforts to modernize the outdated the preservation of cultural Court: A Court of Last Resort. of Canada’s newspapers in the copyright laws, but it’s one of material, and how the bill will affect For a free estimate on your move, Presented by CIPS. 4 p.m. Free. digital age. the most controversial bills in Canadian culture. or information on customized storage solutions, Room 3120, Desmarais Bldg., call now 613 853 7120, or 866 870 1004, 55 Laurier Ave. E. http://www. or email [email protected] socialsciences.uottawa.ca/cepi- Communicate with those most responsible cips/eng/about.asp for Canada’s public policy decisions. On parle francais aussi CJSO Monthly Dinner—Join guest speaker Jonathan Vancouver s Calgary s Montreal s Ottawa s Toronto Browns for dinner and a presentation on Original Japanese For more information or to reserve your government relations and public affairs advertising Paper Making.” 6 p.m. Genji, 175 Lisgar St. RSVP to cjso@ Well-connected. Worldwide.TM www.crownrelo.com space, contact The Hill Times display advertising department at 613-232-5952 ext. 213 cjso-ottawa.com EMBASSY, Wednesday, January 12, 2011—23 Party Time

Breathe

1 Château Laurier better. Staff at the Château Laurier hosted a lavish Christmas party on Dec. 9. 1. Cameroon High Commissioner Anu’a-Gheyle Solomon Azoh; Conservative Senator Raynell Andreychuk; and Château Laurier general manager Richard Payette. Photos: Sam Garcia 2. Kathryn Davis, Château Laurier director of catering; Ukrainian Ambassador Ihor Ostash; and his wife 2 Maryna Hrymych. Embassy Live better.

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4 7 Croatian Ambassador Vesela Mrden Korac hosted a reception at her residence on Dec. 16 to bid farewell to friends as she prepared to return home. 3. Sam Toma and Yumiko Tsunakawa, owners of Zenteriors.ca; Ms. Mrden Korac; Percy Abols, retired DFAIT official. 4. Ms. Mrden Korac chats with Treasury Board President Stockwell Day. Photos: Sam Garcia 5. Fidel Coloma, first secretary at the Chilean Embassy, and Deepak Obhrai, parliamentary secretary to the foreign affairs 5 Photos: Sam Garcia minister. Embassy 8 Embassy The Swedish Embassy hosted a Christmas buffet at the residence on Dec. 13. 10 6. Swedish Ambassador Teppo Tauriainen; New Zealand High Commissioner Andrew Needs; and Mr. Needs’s wife Bronwyn Anne Klenner. 7. DFAIT chief of protocol Robert Peck; House of Commons Speaker Peter Milliken; German Ambassador Georg Witschel. 8. Finnish Ambassador Risto Ensio Piipponen; Lithuanian Ambassador Ginté Bernadeta Damusis; Latvian Ambassador Margers Krams; and Slovakian

Goodbye High Photos: Sam Garcia Ambassador Milan Kollar. 9 Commissioner Cary Embassy British High Commissioner Anthony Cary bid farewell to friends and colleagues at Earnscliffe on Dec. 16. 9. Danielle Leclair; Bloc Québécois Defence critic Claude Bachand; and Clare Cary, wife of Mr. Cary. 10. Slovenian Ambassador Tomaz Kunstelj; Mrs. Cary; Mr. Cary; and Jacques JM Shore, partner and national chair at Gowlings.

12 Photos: Sam Garcia European Union 11 13 Embassy Office (613) 435-0589 EU Delegation First Counsellor Giovanni Di Girolamo and his wife Carolina Gallardo-Frias Di Girolamo hosted a Christmas party on Dec. 9. 11. Elaine Larsen, executive assistant to Mr. Di Girolamo; Dave Journeaux, graphic design artist at Melodic Creative; Mary Burke-Cameron, RBC account manager for embas- Emergencies (613) 263-2069 sies; Eric Cameron, president of Rideau Gate Associates; Mr. Di Girolamo; and Warren Senkowski, political officer of EU relations in DFAIT. 12. Ms. Gallardo-Frias Di Girolamo; Mr. Di Girolamo; Peter Storer, deputy head of mission at the Austrian Embassy; Mrs. Storer. 13. Lambros Kakissis, deputy head of mission at the Embassy of Greece; Russell Stubbert, deputy director of the European Union desk in DFAIT; Masahiro Fukukawa, deputy greeneyehomecleaning.com head of mission at the Japanese Embassy.   

  

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