(Stefanie Obee, Jamie Sterman and Michael KellyInternational TradeBICG 9102-01Anjum SiddiquiDecember 1, 2010) (How Have They Affected the Economic Health of Those Countries) (Canada’s Aid Contributing to Developing Countries)

Like many other developed countries, Canada provides assistance to developing countries in the form of goods, services, transfer of knowledge and skill and financial contribution. Canada aims to improve the quality of life for individuals and families by instating emergency aid and disaster relief programs in developing countries.  Some countries have made significant progress in recent years due to these relief programs, however not all countries with the programs in effect have made the same amount of progress.  Some countries have shown signs of significant economic grow and have even become trading partners with Canada, while others are still very poor and will need a lot more help before they can start developing. Each country has unique assistance program dependent upon on the individual needs and development capacity of the country. Canada’s principles allow it to give the largest portion of its budget to the poorest countries. These include many countries in Africa, Asia, Latin America and the Caribbean.

The Canadian International Development Agency (CIDA) is Canada’s foreign aid program.  The program was developed in 1968 and is solely responsible for more than 80% of the aid Canada contributes to developing countries. The Department of Finance and the Department or Foreign Affairs and International Trade combine to make up the other 20%. The assistance provided by CIDA is known as official development assistance, or ODA.  The main purpose of ODA is to support sustainable development in developing countries, however it also helps with the reduction of poverty, as well as to contributes to a more secure, equitable and prosperous world.

CIDA has six basic priorities:

1. Basic human needs - CIDA strives to provide primary health care, basic education, family planning, nutrition, water, sanitation and shelter to underdeveloped countries.2. Women in development - They support the full participation of women as equal partners in the sustainable development of the countries they live in.3. Infrastructure Services - Helps developing countries deliver environmentally sound infrastructure services (ie. rural electricity).4. Human rights, democracy, and good governance - CIDA works to increase respect for human rights, including children's rights. It promotes democracy and better governance, strengthens the components of civil society (ie. trade unions) It also ensures personal security. 5. Private sector development - promoting sustainable and equitable growth by developing private sectors.6. The environment - CIDA helps developing countries protect their environment and also helps them address environmental issues.

The six main forms of aid given to developing countries are:

Untying aid - This is an ODA for which the associated goods and services may be fully and freely procured.  In April 2008 Canada untied 100% of Canada’s food aid. News that followed was the by 2012-2013 all development ad would be untied.  Canada has made significant progress in with its untying efforts rising from 75% to 91% (2008). Untying aid makes every dollar spent more effective and untying makes the aid given 35% more effective, on average.  This is effective because it gives them the freedom to use any suppliers (ie. local), and the ability to seek the lowest costs. In addition, it helps build local systems and long term capacity for economic growth.

Trade - Trade is a key element in the economic growth of a country and is essential to decrease poverty. Canada is active in helping developing countries access market, through Least D Trade aid has been on the rise since 2005 from $182 million to $316 million in 2008. Canada delivers most of its aid, bilaterally, which is government to government aid but also a significant contributor to multilateral programs, aid given to over 85 international agencies (government to agencies) such as World Bank, the World Trade Organization and the International Trade Centre.

Debt Forgiveness - Canada has provided more than $1.3 billion dollars in debt relief to developing countries. This was done through a combination of bilateral and multilateral actions.

Access to medicines and medical devices - Canada is committed to improving access to safe medicines and medical devices that are needed to address public health programs. Many developing countries have high percentages of citizens living with HIV/AIDS, tuberculosis, malaria and other serious diseases.  Canada’s excellent health care system allows them to provide framework to eligible countries and give them access to less expensive common medicines. All products are exported under a regime.

Culture and Sport in reference to development - Canada has been the leader in the development and adoption of UNESCO, United Nations Education Scientific and Cultural Development. The goal of this development program is to protect and promote the diversity of culture and cultural expressions. Canada has contributed over $600,000 to the International Fund of Cultural Diversity. In addition, Canada has also recognized that sports can contribute to the healthy development of young children. These programs (ie. sports) support child and youth development, engaging youth at risk, and supporting students return to school. All programs target youth and try to help meet their needs while setting them on a path for success in life.

The effectiveness of Canadian aid - The Government of Canada has committed to making Canada’s international assistance program more efficient and focused on the tasks at hand. For the program to be effective, Canada is focusing its efforts geographically and thematically. Efforts in countries of focus are being enhanced to ensure coordination and cohesion of CIDA’s programming. These countries are chosen based on their needs and their ability to benefit meaningfully from Canada’s assistance and alignment with Canada’s foreign policy. CIDA has also chosen priority theme on which to concentrate efforts. Some of the things Canada’s Aid has done for developing countries are: child mortality rates cut in half in one generation, for the first time in developing countries the number of people who can read outnumber those who cannot. Also, average incomes in the developing world have more than doubled over the past 30 years and the number of families with access to safe drinking water has increased over 70%.

In addition to this, some of the accomplishments made due to Canada’s aid are:

· 102 million people were fed in 78 countries

· 3.5 million people were taught better agricultural methods

· 75,000 small businesses were launched

· 20,000 front-line health workers in Africa were trained as a result of Canada’s support to the Catalytic Initiative to Save a Million Lives

· Clean water was provided to 130,000 people in 260 rural districts in Mozambique

· An estimated 45,000 African children’s lives will be saved as a result of Canada’s commitment of $20 million to Save the Children Canada’s community program for malaria and pneumonia

· Through nearly $1 billion in funding to the Global Fund to Fight AIDS, Tuberculosis and Malaria, 4.5 million AIDS orphans have received medical services, community care, and education, and support has been provided to 790,000 HIV-positive women to prevent the transmission of the virus from mothers to their children

· More than 7 million children under the age of five were vaccinated against polio in Afghanistan, one of the last countries where the disease remains endemic

· Over 2,500 community-based schools were established in Afghanistan, providing educational opportunities to 80,000 children—85 percent of them girls

(Table 1: Doubling Canada’s international assistance envelope (Making Canadian Aid Work, 2010))Furthermore, Canada’s aid has reached out to many developing countries. In 2008 the Americas received $724 million, Africa received more than $2.1 billion and Eastern Europe received $197 million. Subsequently Asia received over $1.2 billion, the Middle East received $322 million and $743 million was given to non-specific regions. In 2008-2009 the bilateral funds grew from 53% to 69%. The following chart shows the amount of aid given in Canadian dollars from 2001 to 2011:

In conclusion, Canada’s aid contributions to developing economies have had significant effects on the economic health of developing countries. These positive results have been achieved through the many efforts discussed in this report, such as untying aid and trading. Although there has still not been an end to world hunger or poverty, nor is there gender equality, there has been significant progress made in all of these areas.

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