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In the 2007 and 2008 budgets, the Government pledged to make Canada's growing international assistance program more efficient, more focused and more accountable. Over the past year, we also fulfilled our commitment towards greater effectiveness.
I am pleased to report that in 2008–2009, Canada met its commitment to double its aid to Africa, untied its food aid, increased our geographic and thematic focus, and called for greater cooperation among donors and partners. For the first time, CIDA published its Development for Results Report, increasing our accountability to all Canadians.
During the past year, we experienced a worldwide food crisis and a growing economic crisis: this was a period in which it was important to demonstrate that Canada's international assistance is effective in achieving our objectives of making a real difference in the lives of those living in poverty.
The results and progress that have been achieved are due to the dedication of CIDA staff, in Canada and in the field, along with the support of our many partners here and abroad. This report is a concise performance story that shows clear results in all areas where we have made concrete commitments. The impact of Canada's contribution to the global effort to reduce poverty can be seen in the smiling faces I have encountered and the conversations I have had during my visits to many of the developing countries in which CIDA is working. I am proud that Canada has also responded to disasters such as Cyclone Nargis in Burma and the earthquake in China, which together claimed the lives of more than 200,000 people.
This report shows how Canada has taken bold action, making our country, in the words of the Executive Director of the World Food Programme, "a true hero."
The Honourable Beverly J. Oda, P.C., M.P.
Minister of International Cooperation
The direct benefits of CIDA's work to Canadians are not always well understood. They cannot be compared with the benefits they receive from many other federal departments, as they are indirect—yet crucial—to our Canadian way of living. Canadians know that our future is intertwined with those in developing countries. Canadians care about global poverty, and they want their government, mostly through CIDA, to be a player in the global fight to reduce poverty.
Achieving real economic, social, environmental, and democratic progress in Africa, Asia, and the Americas has an impact on Canada, and therefore on all Canadians, in terms of long-term security and prosperity. Our contribution to fostering democracy, preventing food or health crises, generating economic growth, giving youth and children a better future, stabilizing fragile countries, or responding to natural disasters makes for a better world for all, including Canadians. Canadian values are well served and supported by CIDA's successes in the world.
Canada's aid program builds long-term relationships in selected countries around the world, and it helps make the world more secure for Canadians. It provides a concrete expression of values that Canadians cherish: compassion for the less fortunate, democracy, freedom, human rights, and the rule of law.
CIDA is the government's principal organization responsible for managing the bulk of Canada's development assistance program. CIDA aims to manage its resources effectively and accountably to achieve meaningful, sustainable results. It engages in policy development in Canada and internationally. Its principal goal is to reduce poverty, promote human rights, and support sustainable development in a manner consistent with Canadian foreign policy. The vast majority of CIDA's programming2 satisfies the eligibility requirements of the Official Development Assistance Accountability Act,3 and is therefore reported to Parliament as official development assistance.4
Orders-in-Council P.C. 1968–923 of May 8, 1968, and P.C. 1968–1760 of September 12, 1968, designate CIDA as a department for the purposes of the Financial Administration Act. The authority for the CIDA program and related purposes is found in the Department of Foreign Affairs and International Trade Act and in annual appropriations.
CIDA's Report on Plans and Priorities for 2008–2009 set out two long-term results, or strategic outcomes, to which the Agency contributes by managing the aid program according to five main program activities. The two outcomes are mutually reinforcing, reflecting the interdependency of achievement of development goals and Canadian citizens support. Each program activity is defined in Section II of this report.
|Planned spending||Total authorities||Actual spending|
|Increased achievement of development goals consistent with Canadian foreign policy objectives|
|Performance indicators||Progress toward reducing poverty|
|Progress toward democratic governance (freedom and democracy, human rights, the rule of law, and accountable public institutions).|
|Program activity||2007–2008||2008–2009||Alignment to Government of Canada outcomes|
|Countries of concentration||$758,885,648||$887,821,000||$967,821,000||$930,086,659||$928,159,001||Global poverty reduction through sustainable development5|
|Fragile states and countries experiencing humanitarian crisis||$716,436,642||$611,209,000||$611,209,000||$866,628,289||$864,654,868|
|Selected countries and regions||$490,116,537||$566,902,000||$580,822,000||$459,075,690||$453,929,576|
|Multilateral, international and Canadian institutions||$1,235,072,645||$932,286,000||$991,286,000||$1,331,314,995||$1,317,665,265|
Actual spending (2008–2009) excludes $227.03 million (2007–2008: $215.03 million) in issuance of notes issued to the International Financial Fund accounts. Actual spending also includes expenditures of $163 million (2007–2008: $89 million) recorded as a loss for revaluation on advances and investments due to the value fluctuation of the Canadian dollar.
The variance between 2008–2009 total authorities and actual spending is $23.1 million (2007–2008: $72.2 million). This amount includes $16.3 million (2007–2008: $43 million) in the aid budget, with $15.1 million of this in Treasury Board frozen allotments, and $6.8 million (2007–2008: $20.3 million) in the operating budget.
Explanation of variance
The total increase from 2007–2008 to 2008–2009 in actual spending is mainly attributable to: increased spending in food aid and humanitarian assistance, and in Africa, Haiti and Afghanistan. Among other things, CIDA responded to requests for assistance following numerous natural disasters in 2008–2009 such as Cyclone Nargis in Burma, the Sichuan earthquake in China, and the Atlantic hurricane season, which affected more than 800,000 Haitians. It also provided funding for humanitarian assistance for Palestinian refugees in the West Bank and Gaza. The funding increase for CIDA's 2008–2009 programs was made possible by the increase in the overall International Assistance Envelope in the 2008–2009 Supplementary Estimates.
The variance between 2008–2009 planned and actual spending mainly reflects increased funding received through Supplementary Estimates for programs and initiatives such as funding for humanitarian assistance and increased support in micronutrient programming, with a particular focus on vulnerable regions such as the Horn of Africa and the Democratic Republic of Congo, and funding for humanitarian responses to the Burma and China disasters.
Reducing poverty is at the core of CIDA's mission. Its programs contribute directly to addressing the root causes of poverty in the countries where CIDA is active. Section II of this report highlights some of the concrete results achieved.
Reducing poverty means addressing the various challenges involved in poverty reduction such as lack of education, high illiteracy rates, poor health, access to food and water, economic opportunities, as well as concerns of safety and security. The impact of CIDA's activities in 2008–2009 was witnessed all around the world.
At the same time, the economic and food crises have affected progress toward reducing poverty in the world. According to the 2009 World Bank's Global Monitoring Report,6 food price increases between 2005 and 2008 pushed some 200 million people back into extreme poverty, and about half of them will remain trapped in poverty in 2009 even as food prices recede from their peaks. While food prices have fallen since mid-2008, they remain high by historical standards, and the food crisis is by no means over.
Progress on achieving the MDGs has been uneven
In the developing world, enrolment in primary education reached 88 per cent in 2007, up from 83 percent in 2000. Deaths of children under five declined steadily worldwide: to around 9 million in 2007, down from 12.6 million in 1990.
Although many developing countries are on track to achieving some of the MDGs, large disparities persist among and within countries.
Sub-Saharan Africa remains the geographic region with the furthest to go to meet the MDGs. Countries emerging from conflict or facing political instability are particularly threatened. And in middle-income countries, even where progress toward achieving the MDGs is most rapid, large pockets of inequality mean that millions of people continue to live in extreme poverty.
Reducing maternal mortality is the MDG on which the least overall progress has been made.
More information on CIDA and the MDGs is available at www.acdi-cida.gc.ca/MDGs
The World Bank considers that this global crisis is imperilling attainment of the 2015 Millennium Development Goals7 (MDGs), a set of benchmarks agreed upon by the global community in 2000. The same report presents data on poverty, showing that the number of people living in extreme poverty in developing countries fell significantly from 1.8 billion in 1990 to 1.4 billion in 2005, before rebounding as noted above, but decreasing, in relative terms, from 42 percent of the population to 25 percent. Much of this progress happened in East Asia, where the incidence of poverty decreased from 55 percent in 1990 to 17 percent in 2005.
Still, the United Nations Millennium Development Goals Report 2008 states that although extreme poverty has been significantly reduced since 1990, one billion people are still expected to be living on less than a $1 a day in 2015. Furthermore, inequality between women and men makes poverty even worse for women and girls. Hunger, weak agricultural output, expanding populations, low private sector development and a lack of access to credit are some of the many obstacles facing the world's poor.
In 2008–2009, CIDA contributed to initiatives and sectors (in particular food security, child health, and education) that are directly related to the MDGs and has increased its contributions to their achievement.
Canada has been a key player in various international forums in emphasizing the importance of international assistance in overcoming the current crises affecting most developing countries.
Canada not only maintained, but increased, its aid during this period. Canada is on track to meet its commitment to double international assistance to $5 billion by 2010–2011, and in 2008–2009 met its commitment to double assistance to Africa. Canada has endorsed the G20 plan and the Doha conference on financing development.
A vital component of Canada's international assistance involves supporting the development of strong institutions that respect and advance the rule of law and are accountable, responsive, inclusive, and transparent. CIDA worked to build effective governments that promote democratic participation and human rights, and ensure equality and non-discrimination both at the country and regional levels.
|Sustained support and informed action by Canadians in international development|
|Performance indicators||Level of public support|
|Level of awareness, support, and engagement related to Canada's development program|
|Program activity||2007–2008||2008–2009||Alignment to Government of Canada outcomes|
|Engaging Canadian citizens||$53,909,438||$71,633,000||$71,633,000||$27,415,305||$27,056,378||Global poverty reduction through sustainable development|
Explanation of variance
The decrease in actual spending between 2007–2008 and 2008–2009, and the decrease between planned and actual spending in 2008–2009 are mostly due to internal reallocations to meet new Agency and government priorities and the mainstreaming of institutional capacity building into specific programs and projects.
CIDA's promotion of public engagement in international development begins with providing information to help build awareness, deepening understanding through education and achieving engagement through opportunities to participate.
In 2008–2009 an estimated one million Canadian children and educators were engaged in an active exploration of international development issues to help them get to know their global neighbours, appreciate different world views, and understand the global impact of their choices and actions.
Also in 2008–2009, with CIDA support, about 2,500 Canadian volunteers were directly engaged in international development activities around the world. As well, some 400 young Canadians shared their skills with 55 organizations in 60 developing countries and got first-hand experience about the challenges faced by poor people every day.
CIDA's Public Engagement Fund8 reached more than 55,000 people in 2008–2009 through lectures, films, workshops, speaking tours, participatory theatre, training of youth leaders, art and multimedia contests, and leadership development.
Based on an average of figures from the past two years, it is estimated that activities funded by CIDA's Mass Media Initiative reached Canadians 27.5 million times in 2008–2009.
In 2008, as part of our continued whole-of-government effort to strengthen our accountability through integrated planning, monitoring, and performance reporting, CIDA maintained responsibility for reporting against the majority of progress benchmarks and indicators that underlie the government's quarterly reports to Parliament on Afghanistan.9 CIDA also produced the first Development for Results report,10 available on CIDA's website.
Section II of this report contains more details about the activities carried out to engage Canadians.
|Program and management priority||Type11||Status||Linkages to strategic outcome|
|1) Effectiveness of Canada's aid program||Ongoing||Significant progress made||Increased achievement of development goals consistent with Canadian foreign policy objectives|
|2) Development and reconstruction of Afghanistan||Ongoing||Significant progress made|
|3) Implementing the Americas strategy||Ongoing||Significant progress made|
|4) Meeting the Africa commitment||Previously committed to||Met|
|5) Canada's focus on democracy support||Ongoing||Significant progress made|
|6) Enhancing technical and vocational education and training||New||Significant progress made|
|7) Renewing private sector development||New||Significant progress made|
With a multitude of development players assisting a hundred developing countries through thousands of different aid programs, aid effectiveness is a real challenge. In the 1940s there were just 4 bilateral donors; in 2006 the OECD estimated that there were about 225 bilateral donor agencies and 242 multilateral agencies, including 24 development banks and 40 UN agencies, working in development cooperation.12 This requires greater cooperation among bilateral donors and coherence of activities by agencies.
To increase effectiveness and efficiency, Canada is instituting efforts to maximize resources and reduce redundancy, such as the following:
In February 2009 the Minister of International Cooperation announced13 a list of 20 countries of focus.14 Canada's bilateral country program assistance represents approximately 47 percent of its total aid budget. By 2010–2011, 80 percent of Canada's bilateral country program assistance budget will be concentrated on the 20 countries. Given the progress the Agency is already making, it will achieve this target well before the set timeline. The process of focusing our bilateral program was based on country needs, the country's potential and capacity to achieve results effectively, and Canada's foreign policy.
Canada has increased the number of staff present in the field by 28 percent (from 133 in 2007–2008 to 170 in 2008–2009). This enabled CIDA to better assess the needs of developing countries and to develop even more effective responses. More decision making has been delegated to field staff, allowing for quicker responses and more informed decisions:
There is a collective recognition by donors that tied aid can be costly and inefficient since it undermines the ability of developing countries to produce goods and contribute to their own economic development potential.
Canada's food aid was fully untied15 in 2008. Similarly, Canada is in the process of fully untying its development aid,16 to be completed by 2012–2013. In 2008, Canada's untied aid ratio reached 91 percent, up from 63 percent in 2005.
Untying aid means that Canada's aid dollars will have a greater impact, and demonstrates that Canada's international aid is first and foremost about helping developing countries to help themselves through a more effective, focused, and accountable approach to aid.
As recently as 2008, half of the food aid Canada donated to developing countries had to be purchased in Canada ("tied aid"), and more than one third of Canada's non-food aid was "tied" to the purchase of goods and services from suppliers in Canada.
Canada provides cash contributions to organizations such as the World Food Programme (WFP), which then buys the appropriate food at the best prices in areas closest to the hungry, reducing transportation costs.
When food is bought locally, this leads to the development of local markets, boosts local economies, and eventually leads to sustainable development and economic independence
The new organizational structure, changes in senior management, a recast of countries of focus, and new legislative requirements are all elements serving to strengthen the very foundations on which CIDA delivers its mandate.
Senior management have delineated the key strategic priorities guiding all efforts in the coming year, identifying key impactful actions to improve people management and dedicating resources and time to important initiatives.
CIDA's Evaluation Division has established a new Evaluation Committee composed of 11 members—5 from CIDA and 6 from outside the Agency—thus giving the committee greater independence. The external members come from three key departments—Foreign Affairs, Finance, and Treasury Board Secretariat—and from Canadian civil society, academia, and the private sector. This new committee serves as an advisory body to CIDA's President, and meets quarterly to review a multiyear work plan, evaluation reports, and other evaluation progress reports.
By implementing this approach, CIDA is at the leading edge of the Government of Canada in terms of independent evaluation processes.
Canada's leadership was recognized internationally and domestically for its contribution to the recognition of civil society organizations as development partners at the Accra High-Level Forum on Aid Effectiveness.17 The Advisory Group on Civil Society and Aid Effectiveness, which Canada chaired, was successful in clarifying the issues and hammering out an international consensus on a number of findings and recommendations incorporated in its Synthesis of Findings and Recommendations18
The Accra Agenda for Action19committed donors and developing-country governments to deepen their engagement with civil society organizations as development actors in their own right, and to provide an enabling environment that maximizes civil society's contribution to development.
In December 2008, following a review of the restructuring activities undertaken since 2007–2008, a revised structure leading to increased CIDA's efficiency was announced, to take effect in April 2009. CIDA's new structure20 clarifies accountabilities, ensures a strong policy function to guide programming, and provides a structure for more-focused and -coherent programming. These changes included implementing the Chief Financial Officer (CFO) model, strengthening the linkages between policy development and performance management within the Strategic Policy and Performance Branch, and focusing programming in four program Branches: Geographic Programs Branch, Afghanistan and Pakistan Task Force, Canadian Partnership Branch, and Multilateral and Global Programs Branch.
In 2008–2009, Afghanistan was Canada's largest bilateral aid recipient. CIDA delivered approximately $224 million in reconstruction and development assistance, contributing to: 1) strengthening Afghan institutional capacity to promote economic growth and deliver basic services, 2) providing humanitarian assistance to increase Afghan capacity to deal with crises, and 3) advancing Afghan capacity for democratic governance by contributing to effective and accountable public institutions and electoral processes.
Canada's increased engagement in Afghanistan has been accompanied by a substantial expansion of programming and staffing resources, especially in the field. CIDA undertook considerable efforts this year to improve program policy, planning, delivery, and monitoring capacity in Afghanistan. CIDA maintains responsibility for the majority of progress benchmarks and indicators that underlie the government's quarterly reports to Parliament.
Coherence and coordination among departments has also improved through the continuing work of a full-time task force reporting directly to the Prime Minister and through the Minister of International Cooperation's participation on the Cabinet Committee on Afghanistan.
Canada is among the top five donors supporting the implementation of the Afghanistan National Development Strategy (2008–2013). The situation in Afghanistan remains highly unstable, especially in the south, but progress is being made in several areas, as can be seen on the www.afghanistan.gc.ca website launched in 2008.
Progress was made in implementing the Americas strategy, with an emphasis on the Caribbean21 and on Haiti,22 currently the second-largest recipient of Canada's assistance and where CIDA has played a leadership role in donor coordination. Various CIDA-supported projects in the other countries of the Americas23 also contributed to the implementation of the strategy.
Section II of this report provides other results in various countries of the Americas. The Government of Canada website dedicated to the Americas strategy24 contains additional information on progress so far.
In the 2005 federal budget, in response to African leaders' renewed commitment to fight poverty and improve governance, Canada promised to double assistance to the continent.
In 2007, the government reconfirmed this commitment at the G8 Summit in Heiligendamm, Germany, and then again in its 2008 budget. As of March 2009, this commitment had been met, and between 2003–2004 and 2008–2009, Canada's assistance to Africa doubled, increasing from $1.05 billion to $2.1 billion.
Not only has Canada doubled assistance to Africa, it has also worked hard to ensure its aid yielded strong results. Section II of this report provides details of these results for a number of African countries. CIDA's website offers a collection of results of Canadian assistance in Africa25
Several initiatives are currently being assessed in light of the government's November 2008 commitment to establish a new Democracy Support Agency.
CIDA supports the development of strong institutions that respect the rule of law and are accountable, responsive, inclusive, and transparent. CIDA worked to build effective governments that promote democratic participation and ensure equality and non-discrimination both at the country and the regional levels.
Support for civil society organizations is an integral component of CIDA's activities in the area of democracy promotion. Civil society organizations play a pivotal role in holding governments accountable, ensuring that policies benefit all equally, providing services where the government's reach is inadequate, and establishing a democratic culture.
This $95-million initiative will help developing countries build a skilled workforce necessary for economic growth. The initiative will strengthen local training institutions in partnership with Canadian community colleges and will enable students to acquire the quality vocational and technical skills needed for productive employment.
CIDA's Industrial Cooperation Program (known as CIDA-INC) 27 has been redesigned in light of its 2007 evaluation and of the government's announced intention28 to transfer the program to the Department of Foreign Affairs and International Trade, the government's centre of expertise on international business. The redesign reviewed eligibility and assessment criteria and program administration with a view to increasing tangible private sector development results and ancillary benefits to host countries and communities. It will also help to improve the effectiveness of private sector partnerships and results measurement. Design elements were reviewed and validated through extensive consultations with Canadian firms, business associations, and specialized NGOs.
CIDA has begun working with other departments to implement the government's Corporate Social Responsibility Strategy for the Canadian International Extractive Sector,29 announced in March 2009. One example of CIDA's support for corporate social responsibility is its core funding to the Inter-American Development Bank's Multilateral Investment Fund.30 One of the themes for the fund's work in private sector development is to encourage and assist small and medium-sized enterprises in Latin America and the Caribbean to implement corporate social responsibility measures as a means to improve their competitiveness. CIDA will continue its work to establish an internal focal point with expertise in extractive-sector development issues. The Agency will work in collaboration with like-minded donors and other government departments to advance more responsible and sustainable approaches to extractive-sector development.
Canada Investment Fund for Africa: Generating economic growth
The Government of Canada established the Canada Investment Fund for Africa (CIFA)31 in 2005, within the framework of the Canada Fund for Africa, with an investment of $100 million. CIFA is a joint public-private sector initiative created to provide risk capital for private sector investments into African companies, generate development impacts and economic growth, and promote Canadian commercial interests in Africa. CIFA became fully capitalized in 2006, leveraging an additional $160 million from public and private investors (or $1.60 for every $1 invested by the Government of Canada) for a total value of $260 million. This far surpassed the initial target of raising 1:1 matching funds from third-party investors.
The fund managers have invested almost all of CIFA's capital in 15 companies in the oil and gas, mining, consumer goods, financial services, agribusiness, manufacturing, and logistics sectors, and in 20 more investments through two specialized regional equity funds targeting small and medium-sized enterprises. Investments have been made in countries like Burkina Faso, Democratic Republic of the Congo, Ghana, Nigeria, Rwanda, Senegal, South Africa, and Zambia. Although CIFA is an untied initiative, it has been an important catalyst for engaging the Canadian private sector in Africa. As of March 31, 2009, the value of Canadian content in CIFA investments was almost $70 million, or 31 percent of the value of the fund's portfolio.
Now in its fourth year, CIFA is operating in a commercially viable manner and is subject to stringent, internationally recognized corporate social responsibility measures and environmental standards. CIFA investments are already delivering some development results. Through the leadership of its fund managers, and sometimes in partnership with other donors or non-governmental organizations, portfolio companies are actively engaged in their local communities to deliver corporate social responsibility programs. For example, they are actively engaged in their local communities providing educational and medical supplies, implementing reforestation programs, and delivering educational grants. They have supported the development of local infrastructure, such as roads and bridges, electricity supply, water supply, as well as the provision of financial services to under-represented regions. And they have invested in training and education in areas such as the prevention of HIV/AIDS and in the development of technical and vocational skills.
CIDA's senior management has demonstrated a deep engagement in risk management as CIDA works in a high-risk development environment and in increasingly difficult contexts. A process is in place to review the risk environment on a regular schedule, and mitigation strategies have been developed for the key risks.
The second phase of a fiduciary risk policy has been put in place, as have the related tools. CIDA has developed a suite of 15 risk management tools for the corporate, program, and investment levels. It has conducted sensitization and training sessions with more than half of its staff in headquarters and in the field. A recent internal study about performance management found that the greatest interest in training was in risk management. This helps program managers make informed decisions and take more responsible, appropriate risks to achieve the best development results. This also contributes to greater accountability.
CIDA's Afghanistan Program established a Chief Risk Officer position, and enhanced its integrated risk-management practices this year through risk assessment and mitigation that reinforce its results-based management approach. All key geographic programs are now required to conduct a program risk assessment.
See pages 4,5 and 8 above for a detailed explanation of the variances between 2007–2008 and 2008–2009 illustrated in the graph above and table below.
|Vote or Statutory Item||Truncated Vote or Statutory Wording||2006-2007
|20 *||Operating expenditures||205,394||215,706||224,674||225,663|
|25 *||Grants and contributions||2,379,715||2,474,027||2,553,452||2,930,845|
|(S)||Contributions to employee benefit plans||21,892||23,626||25,784||25,054|
|(S)||Minister for International Cooperation – salary and motor car allowance||73||74||76||77|
|(S)||Payments to the International Financial Institution Fund accounts||243,284||301,846||257,861||238,554|
|(S)||Spending of proceeds from the disposal of surplus crown assets||3||1|
|(S)||Loss for revaluation at year-end||9,311||88,801||163,265|
|(S)||Transfer payments in connection with the Budget Implementation Act, 2007||110,000|
|(S)||Collection agency fees||2||2|
|(S)||Payments for foreign aid||155,000|
|L30||The issuance and payment of notes to the International Financial Institution Fund accounts|
|(S)||Payments to international financial institutions – capital subscriptions||8,004||8,004|
|L40 *||Investment contributions pursuant to section 3 of the Canada Fund for Africa Act||25,267||40,337|
|L45||Payment and issuance of notes to international financial institutions – capital subscriptions||3,324|
|* In 2006–2007, operating expenditures was Vote 30, grants and contributions was Vote 35 and investment contributions pursuant to section 3 of the Canada Fund for Africa Act was L50|